General Electric Company, #GE [NYSE]
Industrial goods, Diversified industry, 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 - 44.98; ATR – 0.64.

Analytical review:

  • Last month the price of the company’s shares has grown by over 3%. It is expected that the rise will continue;
  • The company ranks the first on capitalization in the sector of “Industrial goods” among the issuers traded in the American stock market;
  • According to the last report for Q1 of the fiscal year 2016, net profit of the company increased by 6%, up to 84 million USD. Net profit of the company was $0.21 per share against expectations of $0.19 per share;
  • Recently, the company has signed a contract with Hub Power Company, the largest producer of power in Pakistan to provide technological support for power plants with the capacity of 1292 MW;
  • Financial multipliers indicate possibility of the further increase in the company’s value. The effectiveness of the management is confirmed by the high operating margin (6.72%) and net profit (5.67%) compared with similar companies in the sector (4.77% and 2.75%, respectively);     
  • Large investment companies and banks (UBS, RBC Capital, Stifel) predict a rise in prices of General Electric up to 34 USD per share.

Summary:

  • Last company’s report has increased investors’ confidence in the management of the company. General Electric has strong growth potential. Analysis of multiples indicates possible growth in the company’s shares. Large investment funds predict positive dynamics of shares of the company.
  • 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, 29.65 USD and 29.20 USD.
Resistance levels: 30.30 USD, 30.70 USD and 31.15 USD.

Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 29.85-29.95 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 30.25 USD, 30.65 USD and 31.10 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 30.05/29.90 USD. We recommend 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




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