Why General Electric Stock Is Still a Buy Despite Mixed Results
General Electric's (NYSE: GE) third-quarter earnings are out, and they are highly likely to create mixed feelings among investors. "Mixed" is the appropriate word, as there's disappointing news on the near-term outlook. On the other hand, GE did enough to make investors feel there's something in the results and outlook to underline the value case for the stock. On balance, the stock remains attractive, but near-term pressure is building.
The key takeaways are as follows:
It's the key metric that GE investors follow, and management knows it. The figure of $1.2 billion in the quarter came much better than Wall Street analyst expectations for $289 million, and gave confidence that the company could hit its revised target of $4.5 billion in FCF in 2022. For reference, FCF through the end of the third quarter is $471 million, and it's not unusual for GE to generate $4 billion in FCF in its fourth quarter.
Source Fool.com
