GE Aerospace stock price continued its strong uptrend, reaching its all-time high of $265 on Tuesday. It has risen in the last five consecutive days, bringing the year-to-date gains to almost 60%.
Most notably, it has increased by over 680% in the last five years, resulting in a market capitalization of more than $280 billion. This article explains what to expect ahead of earnings and new catalysts that emerge.
GE Aerospace faces new catalysts
GE Aerospace is a large manufacturing company offering commercial engines and defense and propulsion technologies. It is the remnant of General Electric, a conglomerate that also owned other businesses like healthcare and energy.
The company’s business has performed well in the past few years, thanks in part to the ongoing recovery of the civil aviation and defense business. This growth has pushed its annual revenue rose to over $38.7 billion in 2024, up from $35.4 billion a year earlier.
GE Aerospace has had catalysts in the past few days. For example, there are signs that a faulty engine did not cause the Air India crash. The preliminary report indicated that the plane crashed due to its engines being starved of oil after a switch was moved either accidentally or deliberately.
GE Aerospace also benefited from the recent trip by Donald Trump to the Middle East in which he received Boeing orders worth billions of dollars. That trip will benefit GE because it is the biggest engine supplier to Boeing.
The company will also benefit from the upcoming summit between European and Chinese leaders. China is expected to place a giant order of nearly 500 planes.
CFM International, a joint venture between GE and Safran, is one of the company’s biggest engine suppliers. Its engines power about 72% of the world’s narrowbody fleet.
Meanwhile, the latest US-Indonesia trade deal offers a way in which GE Aerospace will benefit. The deal involves Indonesia purchasing planes worth over $19 billion, for which GE will be the largest engine supplier. As such, other countries will likely follow this approach to reach a deal with Trump.
Read more: GE Aerospace CEO: we are ‘tremendously’ well positioned as a standalone business
Earnings ahead
The next key catalyst for the GE Aerospace stock price will be its earnings, which are expected to be released on Thursday. Wall Street analysts expect the numbers to show that its revenue rose by 15.6% in the second quarter to $9.5 billion.
Its earnings per share (EPS) is expected to come in at $1.4, up slightly from the $1.2 it made in the same period last year. Judging by history, its earnings will likely be much better than expected as it has surpassed expectations in all quarters since going public.
The main concern among analysts is that GE has become a highly overvalued company, trading at a forward P/E ratio of 46 and a price-to-book multiple of 14. This stretched valuation means that the company will need to publish strong results.
GE Aviation stock price analysis
GE stock chart | Source: TradingView
The daily chart shows that the GE stock price has been in a strong uptrend in the past few years. It has moved above the key resistance point at $257, the highest swing on June 6 and June 30.
The stock has formed an ascending triangle pattern, a highly bullish continuation pattern. It has also remained above the 50-day and 100-day moving averages.
Therefore, the stock will likely continue rising as bulls target the key resistance point at $300. A move below the support at $250 will invalidate the bullish forecast.
Read more: GE stock price forms giant megaphone pattern ahead of earnings
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