What’s the Wall Street View of GE?

The Street is falling out of love with GE.  About 40% of analysts give GE a Market Perform – a “Gentleman’s C” – with an equal number above and below that ranking.  Since there’s little reason to buy a stock rated average by the street (buy an index fund instead and get the same resutl with less risk) GE is treading water.

Paraphrasing JP Morgan at Barron’s

Try as it might, General Electric (GE) just can’t get anything going. Don’t expect that to change in 2015, say the folks at JPMorgan.

We began our investment career working with GE employees and retirees.  We once worked for GE.  We remember how well the stock did under the leadership of Jack Welch.

We also have a well-founded skepticism of Wall Street analysis.  That said, we are not better than anyone else in predicting the future.  We don’t know when (or if) GE will regain its footing and begin to grow at a rate that will make it more attractive.  In the meantime, the main thing GE has going for it is a dividend yield over 3.5%.

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