Summary
General Electric's two best divisions, which are Aviation and Healthcare, continued to shine in the second quarter.
Buying GE shares this year will set investors up to receive shares in the Healthcare Division when it is spun off to shareholders in 12 to 18 months.
When all of the restructuring is finished, Aviation will be seen as the core reason to own shares of General Electric.
The market's focus on current corporate-wide results for General Electric (GE) is giving investors a chance to own shares at a bargain basement price. The company's struggles are so well chronicled that investors are overlooking the company's upside potential, driven primarily by Aviation and Healthcare. Once the restructuring is finished, shareholders of General Electric will own a slimmed down company with a cleaned up balance sheet, driven primarily by the performance of its Aviation unit. And as a bonus, current shareholders will receive shares of the Healthcare Division that should be spun off to shareholders in the next 12-18 months.
Below is the financial performance (in the millions) of the Aviation and Healthcare Divisions in the second quarter of 2018:
