GE (GE) reported earnings before the bell Friday. The report just met analysts’ expectations, and there was positive news throughout. GE continues to be a buy and a core part of our portfolio.
4 key data points from General Electric’s earnings report:
- The retirement of Berkshire’s preferred debt will add 3 cents to EPS going forward.
- Industrial orders rose an impressive 16% in the quarter.
- Management expects double-digit EPS growth in 2012.
- GE Capital boosted its contribution to earnings by 79% to $1.47B
4 reasons GE is still a buy at just under $17:
- The stock has solid technical support at just under $16 (see chart):
- GE has an AA+ rated balance sheet and provides a generous dividend yield of 3.6%.
- GE has now beat or met earnings estimates for 13 straight quarters, and has a forward P/E of just 10.6 which is a 25% discount to its five eye average.
- The stock has a five year projected PEG of just over 0.8, which is an over 40% discount to its five year average.
Disclosure: I am long GE.