GE Is Ready For Takeoff

7/24/20

General Electric Company (GE) has been hard hit by the coronavirus shock, and unlike the general market, the stock has barely rebounded since the March bottom. While investors are right to be worried since a great part of GE’s business relates to aviation and energy, today’s price could be an opportunity to buy a company with a 100+ year history at a discount. GE has promising opportunities in healthcare, renewable energy and I expect the aviation sector to recover more swiftly than analysts imagine.

GE has five main segments, which are not that closely related. The other notable thing about the company is that revenues have been declining significantly for the last 10 years. Unsurprisingly, the stock price has fallen with it. But on the bright side, GE has managed to reduce its balance sheet and expenses accordingly, although the company has seen losses in recent years.

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