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Can General Electric Stock Remain in Recovery Mode?

The equity has lost roughly 25% this year

Digital Content Manager
Oct 20, 2022 at 2:54 PM
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General Electric Company (NYSE:GE) is on deck to report third-quarter earnings next week before the open on Tuesday, Oct. 25. The security is trading marginally lower this afternoon, last seen down 0.7% at $70.07. GE has seen some recovery on the charts, adding 13.2% this month already as it tries to chip away at its 25.8% year-to-date deficit. However, the company's upcoming report could dictate whether or not that recovery continues. 

The security has seen a mixed post-earnings response over the past two years, dropping lower the day after five of its past eight quarterly reports. Regardless of direction, the stock averaged a next day move of 3.1% during these sessions, which is slightly lower than the 5% move the options pits are pricing in this time around. 

These options pits have been unusually put-heavy recently. This is per GE's 10-day put/call volume ratio of 1.76 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 91% of readings from the past year.

Analysts, meanwhile, are still clinging to a bit more bullishness. Of the 16 in coverage, nine say "buy" or better, while six say "hold." Meanwhile, the 12-month consensus price target of $84.82 is a 20.6% premium to current levels. 

 
 

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