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Saturday, Sep 21
General Electric finally set to outperform: Barron's
- 14.5x current year earnings estimates is cheap for a late-cycle industrial heavyweight, Jack Hough writes, in this weekend's Barron's feature on General Electric (GE).
- Hough says the shares are set to rise 30% over the next two years as recovering demand for electricity buoys the struggling power and water business, where recent weakness has masked "double-digit gains in other units, like oil and gas, aviation, and transportation."
- Expected margin expansion also bodes well for the GE, as does the company's transition to "a seller of services rather than just equipment."
- Finally, Hough says the long-delayed consumer-lending spinoff could "find willing buyers" with the market "hitting new highs."