GE's Historically Bad Year, Explained

Dow component General Electric Company GE has seen its stock fall nearly 25 percent since the start of 2017, marking a complete reversal compared to the 13-percent gain for the broader index.

GE's stock is also underperforming the broader industrial sector by a notable 34.5 percent so far this year and it hasn't underperformed this much since 1991, CNBC noted, citing FactSet sector data.

Unfortunately for investors, there's little hope of any turnaround in the stock, Gina Sanchez, CEO of Chantico Global explained during a recent CNBC "Trading Nation" segment. Had there been any sign of a turnaround then "we would have seen more evidence of it" right now. In fact, all of the headwinds that would support a turnaround are showing the complete opposite.

Consider GE's core markets of oil and gas, power generation, and airlines. Oil and gas is "largely turned around for the rest of the market" yet investors are left scratching their heads asking "why didn't we see more participation in GE."

"You could see a kitchen sink quarter, next quarter, as the new CEO [John Flannery] comes in and takes a moment to reset GE and expectations," Sanchez concluded.

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