Is GE a buy? The breakdown on General Electric

Lets talk about $GE (General Electric) stock and why I opened a small position Friday.


52 Week High: 13.26

52 Week Low: 5.48

Current Price: 7.90


General Electric has been one of the hardest hit stocks in the market due to COVID-19 but now that the country is recovering I believe there could be more upside after the great jobs news and projections last Friday.


Positives:


  • Relatively new CEO Lary Culp. Has a great history of leading companies back from turmoil.

  • Sold its biopharma business to Danaher (DHR) for more than $20 billion.

  • The hope of Airlines coming back and supporting data which would lead to a renewed recovery in GE aerospace department which makes up the majority of revenue.


Negatives:


  • Has already run 50% off lows.

  • PT’s low and do not present a huge upside.

  • COVID resurgence possible and risk to the aerospace market.


Overall Opinion:


I will hold this position with a trailing stop but I believe there is still some upside to it if the economy continues to recover and people continue to go back to work.

I think the stock could reach 8.50 to 9.00 conservatively in the coming weeks but I urge using stops and watching it like a hawk.


This is not a top recommendation simply an explanation of a trade I have made.


I think names like $SBUX. $TJX, $SGEN, $TTWO, and more are much better long.


Disclaimer: I currently hold $GE and am long the stock.