GE Stock Risk & Deep Value Analysis
General Electric Co
Industrials • Aerospace & Defense
DVR Score
out of 10
What You Need to Know About GE Stock
We analyzed General Electric Co using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran GE through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
GE Risk Analysis & Red Flags
What Could Go Wrong
A severe global economic downturn, coupled with persistent supply chain disruptions (like the yttrium risk mentioned), could significantly depress commercial aviation demand and defense spending, leading to reduced engine orders and service revenue, causing GE Aerospace to miss its ambitious FY2026 profit targets and potentially eroding investor confidence.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Low
Execution
Low
Regulatory
Medium
Red Flags
- ⚠
Insider selling of 37,398 shares worth $11.5M in Q3 2025 (no buys reported).
- ⚠
Dependence on critical materials like yttrium with potential supply chain vulnerabilities (China export controls).
- ⚠
Stock price down 14% over the past 30 days despite analyst upgrades.
- ⚠
Market cap category (mega-cap) inherently limits 10x growth potential.
Upcoming Risk Events
- 📅
Q1 2026 Earnings miss (Estimated April 28, 2026)
- 📅
Escalation of yttrium supply risk from China export controls
- 📅
Significant global economic downturn impacting air travel demand
When to Reconsider
- 🚪
Sustained revenue deceleration below mid-teens for two consecutive quarters.
- 🚪
Significant market share loss to primary competitors (e.g., RTX, Safran).
- 🚪
Materialization of critical supply chain issues (e.g., yttrium) leading to production halts or delays.
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What Does General Electric Co (GE) Do?
Market Cap
$306.20B
Sector
Industrials
Industry
Aerospace & Defense
Employees
53,000
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The company operates through two reportable segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies segment provides designs, develops, manufactures, and MRO services jet engines and avionics and power systems for governments, militaries and commercial airframers, as well as sale of spare parts. This segment also offers small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for both fixed wing and rotorcraft applications. The company operates in the United States, Europe, China, rest of Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
Visit General Electric Co WebsiteInvestment Thesis
GE Aerospace is a high-quality, market-leading industrial company benefiting from strong secular tailwinds in global air travel and defense spending. With a streamlined focus, robust competitive moats, improving financial performance (mid-teens revenue growth, margin expansion), and consistent earnings beats, it is poised for stable, incremental growth and a continued re-rating as a pure-play aerospace leader, making it a strong long-term holding for capital appreciation, though not a 10x growth opportunity.
Is GE Stock Undervalued?
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GE Price Targets & Strategy
12-Month Target
$361.03
Bull Case
$425.00
Bear Case
$290.00
Valuation Basis
Based on average analyst target of $361.03, reflecting approximately 49.8x FY2026 estimated EPS of $7.25.
Entry Strategy
Consider dollar-cost averaging around current levels ($290-$295) given recent pullback and proximity to the low end of analyst targets ($290).
Exit Strategy
Take profit at analyst median target of $331.12, with a stretch target at $361.03. Consider a stop-loss order if the price consistently breaks below $280.
Portfolio Allocation
3-7% for moderate risk tolerance, reflecting a stable core holding with moderate upside.
Price Targets & Strategy
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Is GE Financially Healthy?
Valuation
P/E Ratio
35.87
Forward P/E
41.62
PEG Ratio
2.65
Profitability
Operating Margin
18.55%
Net Margin
19.97%
Return on Equity
35.52%
Revenue Growth
18.00%
EPS
$1.57
Balance Sheet
Current Ratio
1.04
Quick Ratio
0.74
Debt/Equity
1.10
Cash Flow
Free Cash Flow
$7.40B
Other
Beta (Volatility)
1.36
Dividend Yield
0.60%
Does GE Have a Competitive Moat?
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🏰 Wide
Moat Trend
Stable
Moat Sources
4 Identified
The aerospace industry is characterized by high capital intensity, long product development cycles, stringent regulatory certifications, and critical safety requirements, creating substantial and enduring barriers to entry that protect GE's competitive advantages for decades.
Moat Erosion Risks
- •Potential for technological disruption by new propulsion systems (e.g., hydrogen, electric) if GE fails to innovate.
- •Geopolitical events or trade disputes that disrupt global supply chains for critical components (e.g., yttrium for engine coatings).
GE Competitive Moat Analysis
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GE Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral, with some positive momentum from analyst upgrades offset by recent stock decline.
Institutional Sentiment
Positive, with a 'Moderate Buy' consensus from analysts (1 Strong Buy, 16 Buy) and high institutional ownership (74.77–78.4%).
Insider Activity (Form 4)
Insiders sold 37,398 shares worth $11.5M last quarter (Q3 2025); Senior VP sold 19.48% of position, another insider sold 22.29%. No insider buying reported.
Options Flow
Normal options activity (no specific unusual activity flagged in the provided intelligence).
Earnings Intelligence
Next Earnings
Estimated April 28, 2026
Surprise Probability
Medium-High
Historical Earnings Pattern
Historically, GE has consistently beaten EPS and revenue estimates in recent quarters (Q1, Q2, Q3 2025), typically resulting in a positive, though not always sustained, stock price reaction.
Key Metrics to Watch
Competitive Position
Top Competitor
RTX
Market Share Trend
Stable, maintaining a strong position within the aerospace engine duopoly, particularly with the LEAP engine platform.
Valuation vs Peers
Trading at a premium to some traditional industrials due to its pure-play aerospace focus, strong growth trajectory (mid-teens revenue), and robust margins, aligning with analyst targets of 13-24% upside.
Competitive Advantages
- •Proprietary engine technology and intellectual property (e.g., LEAP engines)
- •Extensive installed base driving high-margin aftermarket services
- •Significant regulatory barriers to entry in aerospace manufacturing
Market Intelligence
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What Could Drive GE Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings (Estimated April 28, 2026)
- •Continued progress on $15B share buyback/dividend program through 2026
Medium-Term (6-18 months)
- •Consistent delivery on FY2026 EPS guidance of $7.10–$7.40
- •Increased commercial aviation utilization and new aircraft orders
- •Potential new defense contract awards
Long-Term (18+ months)
- •LEAP engine installed base tripling by 2030, driving high-margin service revenue
- •Sustained global air travel growth and fleet modernization cycles
- •Innovation in sustainable aviation technologies
Catalysts & Growth Drivers
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What's the Bull Case for GE?
- ✓
Sustained mid-teens revenue growth rates in quarterly earnings.
- ✓
Continued expansion of service segment margins.
- ✓
Management commentary on supply chain resilience and new product development initiatives.
Bull Case Analysis
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Competing with GE
See how General Electric Co compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
General Electric Co GE | $306.2B | 0.1 | 35.9 | $45.9B | 20.0% | 18.0% | |
Boeing Co BA | $160.0B | 0.5 | — | — | — | — | Compare → |
RTX Corp RTX | — | 0.1 | 5.0 | $88.6B | 7.6% | 0.0% | Compare → |
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FAQ
What is the DVR Score for General Electric Co (GE)?
As of March 25, 2026, General Electric Co has a DVR Score of 0.1 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of General Electric Co?
General Electric Co's market capitalization is approximately $306.2B. The company operates in the Industrials sector within the Aerospace & Defense industry.
What ticker symbol does General Electric Co use?
GE is the ticker symbol for General Electric Co. The company trades on the NYQ.
What is the risk level for GE stock?
Our analysis rates General Electric Co's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of GE?
General Electric Co currently has a price-to-earnings (P/E) ratio of 35.9. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does General Electric Co pay a dividend?
Yes, General Electric Co pays a dividend with a current yield of approximately 0.60%.
Is General Electric Co's revenue growing?
General Electric Co has reported revenue growth of 18.0%. The company is showing strong top-line momentum.
Is GE stock profitable?
General Electric Co has a profit margin of 20.0%. The company is profitable but margins are modest.
How often is the GE DVR analysis updated?
Our AI-powered analysis of General Electric Co is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on March 25, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for GE (General Electric Co) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.