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On key earnings and sales metrics, GE stock earned a poor EPS Rating of 11 out of 99. However, the stock still has strong, rising institutional support. Therefore, some experts recommend considering investing in GE stock instead of buying Bitcoin.
Bitcoin (BTC) is seeing its correction after hitting new records, with its current price of $34,059. Bitcoin’s volatility is spiking, while its average transaction fees have scaled to their highest since 2018, around $13.82. Bitcoin trading volume has surged to an all-time high in most exchanges led by the top ones, including Binance and Coinbase. However, some analysts recommend those ready to invest consider other options. One of them is General Electric Company (NYSE: GE) stock.
General Electric’s 2020 Performance
In 2020, coronavirus undermined General Electric’s aviation business, as fading consumer demand, reduced discretionary spending, and stay-at-home orders resulted in minimal air travel. As a result, General Electric underperformed analysts’ expectations. Its shares dropped more than 3% last year, its sales for the ongoing quarter have already declined by 17%. On October 29, the industrial giant posted a 60% EPS drop for the third quarter as sales sank 17%. Year-on-year quarterly revenue growth declined by 16.9%, now making up $83.93 billion for the twelve months.
On key earnings and sales metrics, GE stock earned a poor EPS Rating of 11 out of 99. However, the stock still has strong, rising institutional support. In particular, 1,686 funds owned GE shares in December 2020, up from 1,672 in September.
General Electric 2021 Expectations
You may think there are no prospects for the company at all. However, this stagnation is temporary. According to Scott Levine, financial blogger at Motley Fool, General Electric may offer much more opportunities than Bitcoin. As Levine has explained, the market is underestimating the company’s potential. And investors can “pick up the stock on the cheap as shares are trading hands at 14.8 times operating cash flow – a considerable discount to their five-year average multiple of 21.1.”
“There may be a rocky road for GE in the near term, but the company’s backlog – including $262 billion for the aviation segment and $384 billion for power and renewables – suggests that its products and solutions remain in demand. And as the company is now on a firmer financial footing, I think GE represents an interesting opportunity for patient investors who are willing to look at the company in a new light – not as a shadow of its former self.”
As far as GE stock is concerned, it rose 2.58% to $11.74 at 12:00 EST on Tuesday and closed 2.88% up, at $11.78. After hours, it added 0.26% to $11.81. And then, it lost 0.51% in the pre-market. Year-to-date, General Electric stock is 9.07% up. Its market cap is $100.3 billion. General Electric’s worth is higher than its 50-day moving average of $10.79 and way higher than its 200-day moving average of $7.88.