General Electric Could Be the Next Boeing


Penney Vanderbilt and KC Jones: All About Railroads

The Motley Fool

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…

View original post 720 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s