Shares of GE Aerospace (NYSE: GE) traded up 5% as investors reevaluate the potential of the aircraft-focused part of the business following the breakup of General Electric. GE Aerospace, with exposure to popular aviation platforms and potential market share gains, faces near-term headwinds but offers long-term growth potential. Despite some analysts adjusting price targets downward, the stock is climbing back toward previous highs, making it an attractive opportunity for long-term focused investors.
General Electric's stock, now known as GE Aerospace, surged by 11.9% in March ahead of the successful spinoff of GE Vernova, a new aerospace and defense company. The spinoff has been well-received, with GE Vernova's market cap exceeding expectations. Investors are optimistic about GE Aerospace's potential for long-term growth, particularly due to its joint venture with Safran and the expected increase in engine production. Management's guidance suggests strong operating profit growth in the coming years, making the stock a potential candidate for long-term investment.
General Electric's completion of its $191.9 billion breakup has led to bullish investor optimism, with the company's energy spinoff, GE Vernova, beginning trading and GE Aerospace retaining the GE ticker symbol. While many corporate spinoffs have historically resulted in lackluster share price performance, some investors are hopeful that GE's latest spinoff will defy this trend, particularly due to the growth potential of the renewable energy business. Analysts have varying opinions on the prospects of both companies, with some expressing optimism about the aviation business and the increasing demand for energy from AI data centers.
General Electric has completed its split into three separate companies, with its aviation and energy businesses now trading on the New York Stock Exchange as independent entities. The split marks the end of the conglomerate's era, which was once known for its diverse range of products from light bulbs to jet engines. The aviation business, named GE Aerospace, and the energy business, known as GE Vernova, are now publicly traded, while the health care business, GE Healthcare, began trading on the Nasdaq in January 2023. CEO Larry Culp emphasized that this transformation signifies a new beginning for GE, with each company poised for success in their respective sectors.
General Electric has completed its three-way split, with its aerospace and energy businesses now trading as separate entities on the New York Stock Exchange. The breakup, led by CEO Larry Culp, marks the end of an era for the industrial conglomerate, which faced struggles including the 2008 financial crisis and subsequent loss of its place in the Dow Jones Industrial Average. The move follows Culp's efforts to revitalize the company, with GE Aerospace estimated to have a market value of over $100 billion after the spinoff.
General Electric has completed its three-way split into separate companies for its aerospace, energy, and healthcare businesses, marking the end of its era as an industrial conglomerate. CEO Larry Culp's efforts to revitalize the company culminated in this move, which follows struggles including the 2008 financial crisis and a subsequent period of crisis. The aerospace and energy businesses will begin trading separately on the New York Stock Exchange, with GE Aerospace estimated to have a market value of over $100 billion.
General Electric has completed its three-way split, with its aerospace and energy businesses now trading separately on the New York Stock Exchange. The breakup, initiated by CEO Larry Culp, marks the end of an era for the industrial conglomerate, which faced struggles including the 2008 financial crisis. The move follows the earlier spinoff of its healthcare business. GE Aerospace, now valued at over $100 billion, and GE Vernova are the two new entities resulting from the split.
General Electric is planning to split up its remaining businesses, GE Vernova and GE Aerospace, which could potentially lead to significant gains for investors. However, it's worth noting that the Motley Fool Stock Advisor analyst team has not identified General Electric as one of the top 10 stocks for investors to buy now. The Stock Advisor service offers guidance on building a portfolio and has outperformed the S&P 500 since 2002.
Dave Calhoun, a disciple of the late Jack Welch, is stepping down as CEO of Boeing, adding to the list of unsuccessful Welch disciple CEOs. General Electric, once hailed as the world's most respected company under Welch's leadership, will split into GE Vernova and GE Aerospace, marking the end of the conglomerate and the disappearance of its name from publicly traded US stocks. The legacy of Welch, known for playing accounting games, has left a trail of unsuccessful CEOs, including 13 mentees who struggled in leadership roles, while only four were successful. The downfall of these CEOs highlights that Welch's management tactics, such as "ranking and yanking" and short-term focus, are not sustainable for running a company.
Dave Calhoun, a disciple of the late Jack Welch, is stepping down as CEO of Boeing, adding to the list of unsuccessful Welch disciple CEOs. General Electric, once led by Welch, will split into GE Vernova and GE Aerospace, marking the end of the conglomerate and the disappearance of the GE name from publicly traded US stocks. The legacy of Welch, once celebrated, has been tarnished as his mentees have struggled in leadership roles, revealing that his management tactics may not be suitable for running a company in the long term.
Jim Cramer shared his thoughts on various stocks, recommending Arm as a buy and expressing bullishness on Uber, while cautioning against buying General Electric but suggesting holding and buying more if it drops. He also changed his stance on Unity Software due to a change in leadership, referred investors to Coterra instead of Comstock Resources, and expressed a newfound interest in Teva due to its improving situation and low valuation.
General Electric's recent investor day presentations for its upcoming spinoff, GE Vernova, and its remaining business, GE Aerospace, have garnered positive reception, leading to a JPMorgan analyst upgrading the stock's price target to $180 from $166. The upgrade reflects confidence in GE's management team, business model, and positioning within the cycle. With GE Vernova's power business showing cash-flow generation and growth opportunities in electrification and renewable energy, and GE Aerospace's stable business model, the company appears poised for success.
GE Aerospace, the aviation division of General Electric, forecasts operating profits to reach $10 billion by 2028 and plans to initiate a share buyback program and issue dividends to investors. This positive outlook has led to a 4% increase in the company's stock value. The resumption of dividend payments signals a promising turnaround for GE, which has been restructuring its business units, with the Aerospace division set to be spun off on April 2.
Thai Airways has chosen General Electric over Rolls-Royce as its supplier of next-generation widebody engines for its 45 Boeing aircraft order, dealing a blow to the UK company's efforts to improve profitability. Rolls-Royce had faced public criticism from Thai Airways in November over pricing concessions, and the move marks one of the first public losses for Rolls as a result of its tougher stance with customers. The order provides a much-needed boost for Boeing amid manufacturing scrutiny, and Thai Airways plans to unveil more details at the upcoming Singapore air show.
