GE is starting to look a lot like Boeing did two years ago. It faces real challenges, but too many investors are overlooking its strengths.
Shares of General Electric (NYSE:GE) have lost half of their value over the past 12 months. Nevertheless, analysts at several prominent investment banks think the stock could continue sliding, as highlighted by last week’s Barron’s cover story.
The bearish analysts point to falling sales for one of GE’s most profitable product lines, high pension liabilities, “black-box” accounting practices, and a new SEC probe (among other things) as reasons for caution. However, many of the same things were said about Boeing (NYSE:BA) just two years ago. Yet Boeing stock has tripled since then.
GE stock doesn’t have 200% upside today, but it appears to be significantly undervalued for many of the same reasons Boeing stock was…
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