Is It Too Late to Buy GE Aerospace Stock?
GE Aerospace (NYSE: GE) has delivered stellar returns for investors, but is the party over now?
Putting aside the stock chart, GE trades on slightly more than 40 times the midpoint of management's earnings guidance for 2024, making it look expensive on a near-term earnings basis. As such, is there still a case for buying the stock?
The investment case for the stock rests on the life cycle of its most important product: airplane engines. They are typically sold at a loss, only to generate decades of lucrative aftermarket revenue as engines are utilized and periodically come in for so-called "shop visits." A shop visit is when an engine is brought in for maintenance, repair, and overhaul (MRO).
Source Fool.com
