General Electric Company, #GE [NYSE]
Industrial goods, Diversified production, USA

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;
  • At the end of April the company issued report for Q1 of the fiscal year 2016, which showed that company’s revenue rose by 6% to 27.84 billion USD against market expectations of 28.98 billion USD. Net profit has grown by 5% to 0.21 USD per share, which was above the forecast of 0.19 USD per share;
  • At the press-conference company’s management said that company’s revenue was below market expectations because of decline in the sector “Oil &Gas” by 18%. Other business sectors of the company showed positive dynamics;
  • Revenue growth in the sector of “Energy” exceeded 30%, reaching the level of 2.26 billion USD, due to investments to the company Alstom. Revenues in the sector of “Aviation” rose by 10%, due to the increase of service costs;
  • The company has issued revised forecast for the fiscal year 2016. According to the forecast company’s profit will be at the level of 1.45-1.55 USD per share against the previous expectations of 1.51 USD per share. General Electric expects that revenue will grow by 2-4%.

Summary:

  • Last company’s report has increased investors’ confidence into the company. Despite pressure from the strong USD, company’s revenue and net profit have grown. The company has strong growth potential. Revised forecast for the current fiscal year will boost the rise in company’s shares;
  • 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: 29.85 USD and 29.35 USD.
Resistance levels: 30.40 USD, 31.45 USD and 32.00 USD.

Medium-term trading, Н4
At the moment the issuer is traded in the demand zone of 29.85-30.40 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we 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 30.95 USD, 31.40 USD and 31.95 USD with the use of trailing stop.

Medium-term trading, Н4
Medium-term trading, Н4

Short-term trading, М15
Currently, the issuer is traded between the local and resistance levels of 29.80 - 30.20 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened at 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




Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.



Follow us in social networks!
Live Chat
Leave feedback