General Electric Rates High in Growth Investor Model

General Electric (GE) achieves a notable 66% score in the growth model. Despite failing to meet certain asset return metrics, the company's solid book-to-market ratio suggests potential for investor interest and positive stock movement.

Date: 07-01-2025

AI Rating: 5

General Electric (GE) Analysis

General Electric is currently rated 66% based on the P/B Growth Investor model, which emphasizes growth by evaluating low book-to-market stocks. While this score shows some level of confidence in the stock, it falls short of the 80% threshold that indicates stronger investment interest.

Within the evaluation criteria, GE has passed the Book/Market Ratio test, which is a positive sign for potential investors as it indicates the stock could be undervalued relative to its book value. Additionally, the Sales Variance and Return on Assets Variance criteria have both passed, demonstrating that sales performance is stable.

However, GE has failed in critical areas such as Return on Assets and Cash Flow from Operations to Assets, which raises concerns about the efficiency in generating profits from its assets. This indicates potential issues with profitability and operational effectiveness. Furthermore, the Advertising to Assets and Research and Development to Assets tests have also failed, suggesting underinvestment in marketing and innovation that could impact future growth.

While there are mixed indicators about GE’s financial health, the passing grades in key areas such as the book-to-market ratio may prompt cautious optimism among investors. However, the failures in operational metrics could lead to hesitance in aggressive investment strategies.

Stocks: GE