General Electric (GE) stock has made a strong rally in the past few years, making it one of the best-performing industrial companies globally. The stock surged to a high of $151 on Thursday, its highest point since July 2017. It has risen in the past four straight months and is up by over 340% from its pandemic low.

Larry Culp miracle

Larry Culp, the former CEO of Danaher, has engineered a miraculous turnaround of a company that was on its deathbed a few years ago. Before he came in, many analysts and investors were already writing its obituary.

Its revenue growth was moving in the opposite direction while losses were mounting. GE’s revenue stood at over $148 billion in 210 while its profit came in at over $14 billion. By 2017, its annual revenue was $122 billion while its total loss came in at $5.6 billion.

Its total revenue bottomed in 2021 as it slipped to $64.1 billion. It lost $6.4 billion in the same period.

Larry Culp became the company’s CEO in October 2018, replacing Jeffrey Immelt who had taken over from Jack Welch. Immelt led the company for 16 years in which the company increased its investments in energy and finance.

Larry Culp’s approach was to simplify GE from a global conglomerate into three separate companies. The goal was to simplify its operations and remove the conglomerate discount that many similar companies have.

GE break up to three companies

As part of this strategy, Culp decided to break the company into three companies: GE Healthcare, GE Vernorva, and GE Aerospace. These three are really simple companies that anyone can understand.

GE Healthcare, which went public in 2023, is now valued at over $40 billion. It is a company that builds equipment that are used in the healthcare industry. They include imaging, ultrasound, and diagnostics. It competes with the likes of Medtronic and Siemens Healthcare.

GE Vernova, which is set to go public soon, is a company in the energy sector. It builds turbines and other renewable energy items. It has always been a troubled part of GE.

Finally, GE Aerospace is the biggest manufacturer of civil and defense aircraft engines that are used around the world. It is often seen as the crown jewel of the General Electric empire.

While GE is not the corporate giant it was a few years ago, investors love the newer simpler version. Its aviation business has a strong market share and the business is growing again.

The most recent results showed that the company was doing well as the company delivered 1,570 LEAP engines in the quarter while orders rose by 24% in the quarter.

While Larry Culp has killed the GE empire, he has done a lot to save the company. Born in 1963 in Washington, Culp has a distinguished career in the US. Before coming to GE, he led Danaher, where he turned around the company. At Danaher, he saw the stock surge by almost 100%.

General Electric stock price forecast

General Electric

GE stock chart

The weekly chart shows that the GE stock price has been in a remarkable rally since 2020. In this period, it has surged by over 350%, making it one of the top industrial companies. It has remained above the 50-week and 100-week moving averages. The Stochastic Oscillator and the RSI have all moved to the overbought level, meaning that the stock has the momentum.

The shares have also moved above the 78.6% Fibonacci Retracement level. Therefore, the outlook for the shares is bullish, with the next level to watch being at $180, its all-time high. This means that the stock has a 20% upside from the current level.

By Crispus Kanyaru

With a keen eye for market trends and a knack for translating complex financial concepts into engaging narratives, Crispus has established himself as a trusted voice in the world of finance. His work has graced the pages of esteemed publications like Benzinga, Forbes, Invezz, and Banklesstimes, reaching a diverse audience eager to navigate the ever-evolving financial landscape. Crispus's journey began with a deep curiosity about the forces shaping the global economy. This natural inquisitiveness led them to pursue a degree in finance and CPIA, equipping them with a solid foundation in financial theory and analysis. But Crispus knew that knowledge alone wasn't enough. He craved to bridge the gap between dry data and real-world experiences, to make finance accessible and relatable to everyone.

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