Why GE Could Double In The Next Two Years

Investors searching for a safe place may need to look no further than one of the biggest blue chips stocks.

General Electric Company GE has been more or less stuck in a trading range of $23–$31 over the last two and a half years, but the company is poised for dramatic growth, according to Efrem Hoffman, founder and CEO of Running Alpha.

Appearing on Wednesday's edition of PreMarket Prep, Hoffman said that he thinks the Fairfield, Connecticut, company is incredibly well-positioned for the future.

"I would say to really look at some headlines coming out of GE. I wouldn't be surprised, if they were spin off some of their divisions, that the stock could actually double in the next two years."

Related Link: General Electric Chugs Higher

The Industrial Internet

Hoffman's thesis comes from what he called "The internet of all things," also known as the industrial Internet. This is mostly referring to the Internet's growing presence in the infrastructure of our economy. Depending on whom you talk to, this segment is projected to grow into a $15–$30 trillion industry over the next decade.

"The thing is it's going to be such intense competition. In that field you want to focus on companies that license technology," he said. "[General Electric is] considered a technology company, even though a lot of people think of them as an industrial. They have major operations down in Silicon Valley."

It's this ownership of technology that has Hoffman projecting such dramatic growth for General Electric. He said he expects the jump to occur for the company "as soon as the market realizes that they're at the center of this industrial Internet."

To find out who else Hoffman thinks will be a part of the industrial Internet boom, listen to his interview in its entirety after the first break in the clip below. You can listen to PreMarket Prep live every morning from 8–9:30 a.m. EST here, or listen to previous shows here.

Image Credit: Public Domain
Posted In: Efrem HoffmanIndustrial InternetIoTRunning AlphaAnalyst ColorLong IdeasExclusivesTechTrading IdeasInterview

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.