GE Aerospace Analysis
Chart done on daily timeframe. GE investors have enjoyed a phenomenal year with the stock up more than 100% from its 52 weeks lows. The rally can be attributed to demand in the aerospace industry, specifically for commercial jet engines. Large orders helped GE grow its revenue 17% in 2023, but the real growth was in their net income. The company had struggled to bring about strong profits for years, but 2023 was a phenomenal year for them. Unfortunately their profitability is starting to suffer once again this year, with Q1 declining by 80% in net income, but the market still seems to be hopeful as buyer pour into the stock. Despite the push its had, GE’s market cap is still considered fairly valued, but their profitability is where uncertainty lies. The company can easily lose buyers’ confidence if net income continues to shrink in the coming quarters.
Looking at short term chart, GE’s is trading near its 52 week high, which is around 172.60, making that our main resistance in focus going forward. If buyers can break that level, the next targets are 184.60 and 200.00-202.00. Downside support is 147.00.