Market Overview

What's Next For GE? Two Pros Debate

Share:
What's Next For GE? Two Pros Debate

The last two years weren't friendly to General Electric Company (NYSE: GE) investors, with the stock falling from north of $30 per share to below $10 per share and being removed from the prestigious Dow Jones Industrial Average.

So what's next for GE? It depends who you ask.

Chart Pro: Wait For Lower Prices

As expected, GE's stock bounced off its 2009 lows in the mid-$6 per share level, but even after rallying 30 percent, the stock has yet to break above any key resistance levels, Miller Tabak equity strategist Matt Maley said during a recent CNBC "Trading Nation" segment.

The stock's 100-day moving average is "quite a bit above where it is trading right now" and is unlikely to break above on the first try, as the stock's relative strength index is overbought to the same extent it was in 2016.  

"I don't think we get back to the lows we saw back in December," he said. "But I do think long-term buyers will be able to buy [GE] at lower prices over the next month or so."

Trader: 'Long-Term Buyers From Here'

Vios Advisors managing director Michael Bapis offered a different take.

GE's stock is a "classic mispricing of a security," with the health care and aviation units alone worth more than $10 per share, he said. This view implies the rest of the company has a negative valuation, which is inaccurate, Bapis said. 

"If you look at the valuations and the fundamentals, they point to straight up." 

Although this doesn't necessarily translate to the stock similarly shooting "straight up," investors should be long-term buyers of the stock, in Bapis' view. 

Related Links:

Cramer: Don't Rush To Buy GE After Analyst Upgrades

What's Next For General Electric's Stock? Here's A Technical Take

Photo by Jud McCranie/Wikimedia. 

Latest Ratings for GE

DateFirmActionFromTo
Sep 2019Initiates Coverage OnEqual-Weight
Jul 2019DowngradesBuyNeutral
Apr 2019DowngradesNeutralUnderweight

View More Analyst Ratings for GE
View the Latest Analyst Ratings

Posted-In: CNBC Matt Maley Michael Bapis Miller Tabak Trading NationAnalyst Color Analyst Ratings Media Best of Benzinga

 

Related Articles (GE)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
XLNXCascendUpgrades115.0
CISNBairdDowngrades10.0
WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
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 vipaccounts@benzinga.com

Taiwan Semiconductor Q4 Earnings Preview

United Flies After Earnings, And This Chart Shows More Room To Run