Handling Risk Around General Electric’s (NYSE:GE) Earnings Report

Handling Risk Around General Electric’s (NYSE:GE) Earnings Report

by Jared Levy on October 14th, 2010

General Electric ahead of earnings General Electric (NYSE:GE) reports earnings tomorrow before the open.  GE has been a leader in the recent rally and has been a major influence on the price of the Dow Jones Industrial Average (DJIA) to the upside along with Caterpillar (NYSE:CAT).  GE does not tend to be a volatile stock when compared to its Dow Jones peers.  Even though GE is not an extremely volatile stock (relatively speaking) earnings reports can spur abnormal volatility.

Fundamental Analysis

GE obviously has its hands in many different pies spanning across several industries. This can make the shares hard to value, as can the sheer enormity and complexity of the company itself.

Looking at the analyst recommendations, the “outperform” consensus offers a slightly bullish bias from that perspective and the average analyst’s target price is about $18 per share.  GE has had a tendency to rally in the weeks following most of its last earnings reports, although remember that past performance does NOT guarantee…

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