GENERAL ELECTRIC STOCKS RISE AFTER IT ISSUED 2019 OUTLOOK

General Electric stocks are currently trading at 10.44-higher by 4.24% as compared to the previous closing price. The stock was trading higher by 3.49% in the pre-market trading session. The stock has continued rising after the opening bell.

The company told investors earlier today that the company expects 2019 earnings to be below the market expectation as it continues to be plagued by problems in its power business. General Electric expects 2019 adjusted earnings between 50 cents and 60 cents a share, below the consensus estimates of 70 cents per share.

This was the first outlook from GE Chairman and CEO Larry Culp. The CEO said that he expects 2020 and 2021 performance to be significantly better. The company is expecting its power segment to be “significantly better but negative” in 2020.

The company also confirmed that its industrial free cash flow in 2019 will be negative, with the key metric expected between flat and negative $2 billion. General Electric, however, expects industrial free cash flow to bounce back to positive in 2020.

On the technical front, the RSI is currently at 56.85% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards.

 

TRADE SUGGESTION- LIMIT BUY AT 10.35 TAKE PROFIT AT 10.65 STOP LOSS AT 10.20

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