Boston, MA 10/15/2013 (wallstreetpr) – General Electric Company (NYSE:GE) operates ina business environment which is easy to understand and consistent. At one place where it provides the required infrastructure and services to the oil and gas companies, power companies, aviation and transportation companies, healthcare companies then on the other side, it supplies to the military as well. GE’s diversified portfolio of its operations makes it an attractive buy and a stock to hold on. This is evident from the operating earnings which recorded a growth rate of over 8% and the year-over-year increase of 45% in its cash flow.
General Electric’s stock has been trading in the range of $21-$24 over the past twelve months which could possibly be an advantage point for investors to make an entry into the stock. GE’s 52 week high price range is $24.95 and the 52 week low price is $19.87. GE’s languishing earnings can be due to the weak performance of GE’s financial segment i.e. GE Capital. The company’s intentions to either completely exit or reduce its operations in GE Capital could bring back the glitter into its present weak earnings.
It is worthy to note that GE has been aggressively involved in buying back its own shares and is determined to continue to do so in future. The company had 10.6 billion shares outstanding about a year ago which has come down to 10.2 billion shares now, which is 4 percent of buyback in a year. This has led to Analysts to make a downside prediction of the stock by setting a market consensus estimate of $0.37 earnings per share. The revenue is forecasted to be $35.8 billion down from the previous year’s revenue of $36.3 billion.
Amid GE’s buyback activities and its much presented gloomy prospects, the factor which surpasses all this concern is the GE’s ability to deliver in terms of being a highest dividend paying company. With a current yield of 3.25%, the company has put across its objective to keep the dividend yield up. Therefore, in the days to come GE can surprise its investors.
