2016-07-25 16:14:29

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 1.19;
Capitalization – 302.06 В;
Return on asset – 0.30%;
Income - 1.68 B;
Average volume – 50.82 М;
P/E - 213.43;
ATR – 0.64

Analytical review:

  • The company ranks the first on capitalization in the sector of “Industrial goods” among the issuers traded in the American stock market;
  • Over the past 3 months, the price of company’s stocks has increased by 5%. It is expected that the rise will continue due to favourable financial report and positive dynamics in the US stock market;
  • Last week the company issued report for Q2 of the financial year 2016. According to press release, company's revenue has grown by 15%, up to 33.49 billion USD against the forecast of 30.84 billion USD. In the reporting period net profit of General Electric was $0.51 per share against the forecast of of $0.46 per share;
  • Company’s management said at the press-conference that financial performance has improved due to the positive dynamics in the company’s divisions of “Aviation”, “Healthcare” and “Energy”. In the division “Oil & Gas” the revenue fell by over 20%;
  • The effectiveness of the company is also confirmed by the high levels of operating margin (6.72%) and net profit (5.67%) against the levels of the similar companies in the industry (5.05% and 2.72% respectively);
  • The company has upgraded the forecast for operating profit in the fiscal year 2016. It is expected that operating profit will be at the level of 1.45-1.55 USD per share against the previous forecast at the level of 1.50 USD per share.


  • Last company’s report has increased investors’ confidence in the management of the company. Despite pressure from the strong USD, company’s results exceeded market expectations. General Electric has strong growth potential. Forecast for the current fiscal year will contribute to the rise in company’s stocks;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of General Electric Company

Key levels:
Support levels: 31.65 USD and 31.15 USD.
Resistance levels: 32.55 USD and 32.95 USD.

Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 31.65-32.00 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we will recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 32.90 USD, 33.50 USD and 34.50 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 31.75/32.15 USD. It is advisable to enter the market after breakdown and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15