Ignore General Electric: Here Are 3 Better Stocks
The case for buying stock in General Electric (NYSE: GE) is based on the idea that its aviation segment will embark on a slow recovery in line with a gradually improving commercial aviation market. Meanwhile, its healthcare segment will continue to generate solid, if unspectacular, earnings growth, and management actions to restore margin in its power and renewables businesses will bear fruit. It's an interesting proposition, but it's going to take time and effort to work, so why not buy some better stocks with exposure to these industries? Here are a few ideas.
GE Aviation contends with Raytheon Technologies' (NYSE: RTX) Pratt & Whitney segment in the commercial aviation engine market. Pratt and CFM International (a joint venture between GE and Safran) compete directly on the Airbus A320 Neo, while CFM's LEAP engine is the sole engine option on the Boeing 737 MAX. In addition, both companies have legacy engines on the Airbus A320 family and Boeing 737 -- an important point because the true profit center in aircraft engines is in aftermarket sales and service.
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Source Fool.com
