Market Overview

General Electric Is A 'Screaming Buy' And 'Spectacular Opportunity,' Analyst Says

General Electric Is A 'Screaming Buy' And 'Spectacular Opportunity,' Analyst Says

General Electric Company (NYSE: GE)'s valuation took a hit last week when the company announced a dividend cut and an update on its business that disappointed many investors.

The Expert

Larry McDonald, founder of the Bear Traps Report.

The Strategy

At a time when many investors are pulling the plug on GE's stock, McDonald said it gives investors a "spectacular opportunity." 

The Thesis

GE shares are set up for a "very unusual opportunity" for two key reasons, McDonald said during a recent CNBC "Trading Nation" segment.

First, despite Moody's Investors Service downgrading the company, the credit markets aren't showing signs of worry, he said. Second, GE's story is likely to improve over the next six months, which implies the stock is a "screaming buy" at current levels.

Also, a new management team running GE, led byrecently appointed CEO John Flannery, is a positive catalyst for the stock, McDonald said. As is typically the case with any new CEO, they "come out with a lot of truths that the previous management wouldn't unearth."

Price Action

Shares of GE were trading lower by more than 1.5 percent Monday afternoon at $17.91, within striking distance of the stock's 52-week low of $17.46.

Related Links:

Cramer Wants GE's Entire Board Added To His 'Wall Of Shame,' Faults Immelt And Flannery

After GE Slashes Its Dividend, Who Will Be Next?

Latest Ratings for GE

Jul 2019DowngradesBuyNeutral
Apr 2019DowngradesNeutralUnderweight
Mar 2019MaintainsOverweightOverweight

View More Analyst Ratings for GE
View the Latest Analyst Ratings

Posted-In: CNBC General Electric John Flannery Larry McDonald The Bear Traps ReportAnalyst Color Analyst Ratings Media Best of Benzinga


Related Articles (GE)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Janet Yellen Resigns From Federal Reserve Board Of Governors

Mid-Afternoon Market Update: Dow Gains 90 Points; Micronet Enertec Technologies Shares Drop