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2023-12-16 00:00:00
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2023-12-16
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GE
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By Paul Sandle, Sarah Young and Tim Hepher
LONDON, Dec 20 (Reuters) - The chief executive of Rolls-Royce RR.L said on Wednesday his mission to lift the British company's profits was compatible with continuing to gain market share and delivering improvements in engines demanded by airlines.
Tufan Erginbilgic was brought into Rolls-Royce last January to turn around Britain's flagship engineering company, and investors like what they have seen, with the shares rising more than 200% this year.
But his challenge is to convince airlines after a public row with Dubai's Emirates, one of the world's biggest, whose president told Rolls last month to "go back to basics" and pay attention to improving the durability of its products before raising prices.
"We are going to transform Rolls-Royce with customers, not against customers," Erginbilgic told Reuters.
Emirates has said the time between repairs of Rolls' XWB-97 engine in hot and dusty conditions must improve before it will buy A350-1000s, raising questions over the impact on plane maker Airbus AIR.PA for which Rolls is the sole supplier of engines for wide-body jets.
Long-standing customer Thai Airways is finalising an order for 80 Boeing 787s powered by competitor GE GE.N after disagreements over pricing with Rolls, industry sources have told Reuters.
The move, which is intertwined with a defeat for the Airbus A350, follows a disagreement over whether Rolls could increase prices for engines on previously acquired 787s, in the event the airline added GE to its all-Rolls wide-body fleet, they said.
None of the parties have agreed to comment.
But Erginbilgic said in an interview on Wednesday that orders continued to flow despite recent criticisms.
"There is one deal, which is very important and big," he said. "We've made the deal. It is not announced yet."
Some analysts have voiced concerns about the impact of efforts to improve prices on Rolls' market share, even though the size of the market is growing overall. Competitivity is driven partly by the number of engines built relative to rivals.
Erginbilgic rejected this.
"Our delivery market share is around 55% and that will continue for the next 5-10 years, so we are gaining market share every year including this year".
GE's share has been curbed partly by Boeing BA.N delivery delays.
Based on underlying aircraft deliveries and excluding spares, Agency Partners analyst Nick Cunningham said Rolls had a 52% share of large engine deliveries in 2022, projected to dip to 48% in 2027 versus GE's 47% (with the rest represented by Pratt & Whitney RTX.N engines for U.S. military tankers).
"They are around equal. If Boeing can ramp higher, then GE will overtake RR again, but that’s a big if," he said.
'TIME-ON-WING'
Durability is a key issue for airlines because unscheduled repair visits, coupled with higher waiting times for spares across the industry, have forced many planes to be grounded.
Christine Ourmieres-Widener, CEO of Air Caraibes and French Bee, said waiting times for spare A350 engines is 18-24 months.
Erginbilgic said Rolls is investing heavily in improvements to its Trent 1000 engine, an option on Boeing's 787, and the XWB-97, which exclusively powers the Airbus A350-1000.
"I'm investing in the next three or four years more than 1 billion pounds in time-on-wing," he said.
"We are more than doubling Trent 1000 time on wing, XWB-97 time on wing is actually good in benign environments; in non-benign environments we will more than quadruple."
Long-delayed certification of improvements to the Trent 1000 will come next year, he said, aiming to restore its competitiveness on the Boeing 787.
"We've done everything we could. It is going to be certified now next year," he said.
"That will more than double durability. Then in 2025, given our programme, we will make another 25-30% improvement. Our engine will be very competitive to GE's engine."
Analysts say GE has effectively become the de facto sole engine of choice on the 787 in recent orders.
"We would like to grow Trent 1000 and grow our position in 787 as well," Erginbilgic added.
The historic Trent 1000 durability problems have dragged on Rolls since 2016, and the company only narrowly avoided collapse during the COVID-19 pandemic, as a turnaround attempt floundered.
Erginbilgic's fix for the Derby, England-based company, which also has defence and nuclear capabilities, is a new pricing strategy for the sale and maintenance of its engines, while at the same time boosting durability for airlines and curbing costs for Rolls.
Erginbilgic insisted Rolls had come a long way since he was famously reported to describe the company he had just joined in January as a "burning platform".
"It is not the same company," he said.
(Reporting by Paul Sandle, Sarah Young, Tim Hepher; Editing by Emelia Sithole-Matarise and Nick Zieminski)
((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-16
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GE
|
General Electric Company’s GE unit, GE Vernova (combined operations of GE Digital, Renewable Energy and GE Power), has recently inked a framework deal with Forestalia for the installation of onshore wind turbines across several upcoming project sites in Spain.
Per the deal, GE will supply approximately 693 megawatts (MW) of wind turbines in 16 different project sites across the country’s Aragon region. The company will install a total of 110 units of 6.1-158 wind turbines in the Zaragoza region in six phases. The first phase, which is already in progress, will see 33 units of wind turbines being constructed at five wind farms.
Out of the 110 GE turbines, 33 turbines will have a hub height of 101 meters and the rest will have a hub height of 120.9 meters. The delivery of the turbine units will be completed by 2024 end.
This deal supports Spain’s effort to shift toward renewable sources of energy and will attract similar projects in 2024.
The collaboration between General Electric and Forestalia is built on the prior deal signed in 2016. It also bolsters GE’s wind collaboration in the region.
Recently, General Electric has received a series of deals, which are likely to drive its growth. In November 2023, General Electric secured a deal from O2 Power Private Limited to deliver, install and commission 36 units of workhorse 2.7-132 onshore wind turbines. The turbine units will be installed at a 97 MW wind power project in Maharashtra, India.
In August, GE secured two orders from Royal Golden Eagle Group’s subsidiary East Asia Power (Yangjiang) Co., Ltd. and Beijing Energy International Holding Co., Ltd. to deliver four units of 6F.03 gas turbines.
Price Performance
In the past year, the GE stock has gained 54% against the industry’s 1.2% decrease.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
General Electric currently carries a Zacks Rank #3 (Hold). Some better-ranked companies have been discussed below.
Federal Signal Corporation FSS presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has gained 66.2% in the past year.
ITT Inc. ITT presently carries a Zacks Rank #2. It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have jumped 46.9% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 4.4%. The stock has gained 41% in the past year.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-16
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GE
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By Allison Lampert
MONTREAL, Dec 19 (Reuters) - Aerospace supplier CEO Hugue Meloche spends more than C$10,000 for each skilled foreign worker he brings to his company's Montreal-area factories, but paying those costs is preferable to leaving key positions unfilled while orders boom.
As clients like engine maker General Electric GE.N boosted production in 2022, the head of Meloche Group hired 20% of its workforce of 500 from countries like Mexico, Tunisia and Brazil to make up for staffing shortfalls. This added at least C$1 million ($736,377.03) in costs at a company generating around C$100 million in annual revenue.
Added costs like those are especially hitting smaller suppliers with limited resources, industry officials said. The suppliers must then cut costs elsewhere or pass on those extra charges to their customers while struggling to meet demands for competitive pricing and higher production from planemakers Airbus AIR.PA and Boeing BA.N.
The tight manufacturing labor market, following a wave of retirements during the height of the COVID-19 pandemic, has led North American aircraft repair shops and suppliers, especially in Canada, to recruit a small but growing number of workers from abroad. This fills critical positions but puts a fresh burden on small suppliers whose human resources staff normally do not help new arrivals find homes and cars.
These challenges are not going away as airline and aerospace executives remain cautious on supply chains and see problems persisting until 2025.
Meloche's company in the Canadian province of Quebec offers loans to recruits, as well as short-term housing. It has four employees dedicated to helping newcomers with everything from finding a new home to buying a car.
"We are the help desk," Meloche said in an interview. "We have huge needs. For us, immigration is not a choice."
Plane and engine makers rely less on foreign labor since they have the heft to lure domestic talent with better incentives, recruiters say. But they are not immune.
Business jet maker Bombardier BBDb.TO, which has 17,000 workers globally and generated $6.9 billion in 2022 revenue, told Reuters it expects international recruitment will represent 10% to 15% of its Quebec production workforce hired in the next few years, an estimate that was not previously reported. It currently employs about 9,400 in Quebec.
Airbus' Canadian division said some of its recruitment needs must be met via immigration, while Boeing said the use of U.S. visas to bring in foreign workers "is very limited."
Montreal-based Bombardier is taking on 40 new Moroccan workers with 40 more set to join, following its first international recruitment mission for trade laborers this year. The company provides housing, paid flights and other perks.
Offering that kind of help is harder for smaller suppliers, which make up most of the 17 aerospace companies in Quebec that hunted for workers abroad in 2022, according to data from Canadian recruitment specialist AURAY Sourcing International.
APARTMENT HUNTING
"We're asking (human resource departments) to ... have other tasks they've never had, such as looking for apartments," AURAY client services manager Emilie Sauvé said.
For companies like Meloche that have had employees poached, or leave for jobs at planemakers, one benefit in hiring foreign workers under immigration rules is that "they have to be loyal to the company they're hired for," Sauvé said.
"The small suppliers are drowning."
Hugue Meloche, who expects his business to generate C$135 million in 2023 revenue, sees recent economic headwinds easing the labor shortage, but recruitment of foreign workers will persist in Canada's aerospace hub.
Indeed, recruiters say Canadian aerospace companies use foreign workers more than their U.S. counterparts due to the availability of immigration programs that allow such hiring more easily north of the border.
But U.S. aircraft repair companies also consider foreign workers as an option, with a North American shortfall of aviation maintenance workers likely to hit 43,000 by 2027, according to consultant Oliver Wyman.
One U.S. trade association representing aircraft repair shops is weighing whether in-demand jobs like aircraft mechanics could be eligible for special visas.
AAR Corp AIR.N, a Chicago-based network of aircraft maintenance shops, has recruited some technicians from Mexico in recent years under an existing visa due to growing shortages at home, said Ryan Goertzen, a company vice president.
Figures for foreign aerospace workers in the U.S. were not available from three government departments approached by Reuters. According to Canadian government data for one nonimmigrant admission program, there were 125 temporary foreign worker positions for aircraft mechanics last year, compared with seven a year earlier and 66 in 2019.
There are a handful of programs in Canada used to recruit foreign workers, said Sauvé, adding she expects to see higher numbers this year and next as demand grows at her own firm.
The number of aerospace positions targeting international candidates grew 136% at Sauvé's firm this year compared with 2022.
"We had it last year, but this year it's exploded," she said.
At aircraft repair shop KF Aerospace in British Columbia, workers from countries like South Africa and the Philippines account for about 7% of the workforce. The company has 22 apartments for short-term staff housing.
KF hired 40 skilled foreign workers alone this year, compared with roughly 35 over 2018 and 2019 combined.
Each skilled foreign worker requires an investment of more than C$11,000 in relocation and immigration costs. But the cost is worth it since KF Aerospace needs skilled workers in order to be able to hire local apprentices, who require mentoring.
"Once we hire them, we want to hang on to them as long as we can," KF's chief corporate services officer, Grant Stevens, said, referring to the skilled foreign workers.
"Long gone are the days of, 'just put an ad.'"
($1 = 1.3580 Canadian dollars)
(Reporting by Allison Lampert in Montreal Editing by Ben Klayman and Matthew Lewis)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-16
|
GE
|
By Tim Hepher
PARIS, Dec 19 (Reuters) - Airbus AIR.PA is on course to break aerospace order records in 2023 after a buying spree from European airlines and a brisk month so far in deliveries, industry sources said on Tuesday.
Orders for a total of almost 200 jets from easyJet and Lufthansa on Tuesday looked set to push gross orders so far this year above the record of around 1,800 in 2014, the peak of the last major cycle, as airlines gamble on a scarcity of jets.
Gross or unadjusted orders give a rough indication of the pace of market activity in a particular year, though analysts say a more widely watched indicator of a jetmaker's performance is "net orders", which exclude cancellations and conversions.
Those figures will not be officially available until January, but the sources said there are strong chances that Airbus also will breach the previous record of more than 1,500 net orders.
Airbus declined comment on possible end-year totals before a full-year announcement expected around Jan. 11.
Airlines are scrambling to order new planes to renew existing fleets amid fears of a shortage in coming years.
Both Airbus and Boeing, which also posted a key Lufthansa order on Tuesday, could announce more deals this month, buoyed by the snapback in demand after the COVID-19 pandemic, industry sources said.
The looming record caps the decades-long sales career of Airbus Chief Commercial Officer Christian Scherer as he prepares to become CEO of the overall civil jetliner business in the new year.
The 16,000-plane tally of former Airbus sales chief John Leahy in the 1994-2017 period remains the industry's most sustained sales haul.
On Friday, Turkish Airlines announced 220 new Airbus orders plus 10 A350-900s which had already been on Airbus' books without the buyer's name being immediately disclosed. It has indicated it plans to place a comparable mega-order with Boeing.
DELIVERIES NEARING TARGET
Despite the positive end-year note, Airbus is also digesting a strategic loss at Thai Airways, which is finalising an order for 80 GE-powered Boeing 787s after disagreements over pricing with long-time supplier Rolls-Royce, which powers the competing Airbus A350 and previously ordered 787s, industry sources said.
None of the parties has commented on ongoing negotiations.
Reuters first reported on Dec. 7 that the Thai carrier was closing in on the 80-plane deal with Boeing after increasing its requirement for wide-body jets in September. A proposed parallel order for 15 narrow-body jets does not appear to be imminent.
On the industrial side, Airbus delivered 623 aircraft between January and November, leaving it with 97 to deliver in December to reach its annual target of 720 aircraft.
With just over 10 days to go, the total has reached some 680 planes, industry sources said, taking some of the urgency out of the company's traditional end-year scramble to hit its target.
It is the second time since the pandemic that Airbus has tried to hit 720 deliveries after supply pressures dashed the attempt last year.
After a weak start to the year, analysts have voiced increasing confidence that Airbus will meet its delivery targets in 2023, but say next year will be challenging, with the production ramp-up hampered by shortages of materials and parts.
(Reporting by Tim Hepher; Editing by Paul Simao)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-15
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GE
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Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-15
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GE
|
General Electric Co. (GE) shares closed today at just slightly below its 52 week high of $123.67, giving the company a market cap of $134B. The stock is currently up 87.3% year-to-date, up 102.1% over the past 12 months, and up 190.4% over the past five years. This week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 2.4%.
Trading Activity
Trading volume this week was 148.9% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Information Technology industry sector , beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 1956.5%
The company's stock price performance over the past 12 months beats the peer average by 1282.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 13.9% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-13
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GE
|
Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-13
|
GE
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By Scott DiSavino
Dec 13 (Reuters) - U.S. natural gas futures held near a six-month low on Wednesday on record output and forecasts for mild weather and lower heating demand next week than previously expected that should allow utilities to pull less gas from storage than usual through at least late December.
Analysts forecast there was currently around 7.8% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) fell 1 cent, or 0.4%, to $2.301 per million British thermal units (mmBtu) at 9:16 a.m. EST (1416 GMT), putting the contract on track for its lowest close since June 12 for a second day in a row.
That kept the front-month in technically oversold territory with a Relative Strength Index (RSI) below 30 for a sixth day in a row for the first time since February.
The number of futures contracts traded on the NYMEX NG-TOT jumped to a 1.004 million on Dec. 11, its highest since March 2020.
But a lack of big price moves in recent weeks has cut historic or actual 30-day close-to-close futures volatility to 45.9%, the lowest since September 2021.
Historic daily volatility hit a record high of 177.7% in February 2022 and a record low of 7.3% in June 1991. Historic volatility has averaged 71.5% so far this year, versus a record high of 92.8% in 2022 and a five-year (2018-2022) average of 57.9%.
With record production and ample gas in storage, futures have been sending bearish signals for weeks that prices this winter (November-March) likely already peaked in November.
The premium of futures for 2029 NGCALYZ9 (five years out) over 2024 NGCALYZ4 rose to a record high for a fourth day in a row.
Analysts expect prices to climb in coming years as demand for the fuel grows as new U.S. liquefied natural gas (LNG) export plants enter service in the U.S., Canada and Mexico.
For 2024, however, some analysts have reduced their U.S. demand forecasts after Exxon MobilXOM.N delayed the start of first LNG production at its 2.3-billion-cubic-feet-per-day (bcfd) Golden Pass export plant under construction in Texas to the first half of 2025 from the second half of 2024.
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 108.4 bcfd so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain warmer than normal through at least Dec. 28.
With the weather remaining mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would slide from 125.0 bcfd this week to 122.2 bcfd next week. The forecast for this week was higher than LSEG's outlook on Tuesday, while its forecast for next week was lower.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.6 bcfd so far in December, up from a record 14.3 bcfd in November.
The U.S. is on track to become the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar. Much higher global prices have fed demand for U.S. exports due in part to supply disruptions and sanctions linked to the war in Ukraine.
Gas was trading around $11 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe TRNLTTFMc1 and $16 at the Japan Korea Marker (JKM) in Asia JKMc1. NG/EU
Week ended Dec 8 Forecast
Week ended Dec 1 Actual
Year ago Dec 8
Five-year average
Dec 8
U.S. weekly natgas storage change (bcf):
-48
-117
-46
-81
U.S. total natgas in storage (bcf):
3,671
3,719
3,419
3,404
U.S. total storage versus 5-year average
7.8%
6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.30
2.31
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
11.22
11.02
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
15.62
15.75
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
320
317
475
387
411
U.S. GFS CDDs
1
2
3
5
4
U.S. GFS TDDs
321
319
378
392
415
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.1
108.8
109.0
102.8
94.2
U.S. Imports from Canada8
8.8
8.6
8.9
10.0
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
116.9
117.5
117.9
112.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.3
3.4
3.4
3.4
3.2
U.S. Exports to Mexico
3.9
3.9
4.8
5.2
5.0
U.S. LNG Exports
14.5
14.6
14.0
12.6
8.6
U.S. Commercial
13.2
13.9
13.0
15.4
14.6
U.S. Residential
20.9
22.5
20.7
25.8
24.7
U.S. Power Plant
33.2
33.7
33.7
30.4
28.6
U.S. Industrial
24.3
24.7
24.3
24.7
25.0
U.S. Plant Fuel
5.3
5.4
5.4
5.3
5.3
U.S. Pipe Distribution
2.7
2.7
2.7
2.7
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
99.8
103.1
99.9
104.4
101.2
Total U.S. Demand
121.4
125.0
122.2
125.6
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
83
82
83
107
81
Jan-Jul
81
82
77
102
79
Oct-Sep
82
83
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 15
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Wind
13
12
10
11
9
Solar
3
3
3
3
3
Hydro
5
5
6
6
6
Other
2
2
2
2
2
Petroleum
Natural Gas
40
40
42
39
42
Coal
16
17
17
16
17
Nuclear
21
21
20
22
21
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.37
2.39
Transco Z6 New York NG-CG-NY-SNL
2.10
2.07
PG&E Citygate NG-CG-PGE-SNL
4.04
4.02
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.86
1.82
Chicago Citygate NG-CG-CH-SNL
2.16
2.13
Algonquin Citygate NG-CG-BS-SNL
4.00
3.08
SoCal Citygate NG-SCL-CGT-SNL
4.15
3.78
Waha Hub NG-WAH-WTX-SNL
2.00
1.57
AECO NG-ASH-ALB-SNL
1.22
1.17
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
38.25
34.25
PJM West EL-PK-PJMW-SNL
39.50
48.50
Ercot North EL-PK-ERTN-SNL
21.00
23.25
Mid C EL-PK-MIDC-SNL
59.08
63.00
Palo Verde EL-PK-PLVD-SNL
43.25
45.50
SP-15 EL-PK-SP15-SNL
49.00
51.75
(Reporting by Scott DiSavino, Editing by Nick Zieminski)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
GE
|
General Electric Company’s GE unit GE Vernova’s Gas Power business has secured a multi-year services deal from Malaysia and Kuwait-based engineering company TNB REMACO – Al Dhow Joint Venture to upgrade gas turbines installed at Kuwait’s Ministry of Electricity & Water & Renewable Energy’s Shuaiba North Power Station.
GE Vernova is the combined operations of GE Digital, Renewable Energy and GE Power. Its Gas Power business includes General Electric’s gas lifecycle business (including Power Services and Gas Power Systems businesses).
Al Ahmadi, Kuwait-based 876 Megawatt Shuaiba North Power station has three electricity generating blocks. Each electricity block contains a 9F.03 gas turbine and generator from General Electric. Per the five-year agreement, the company will elevate the combustion technology installed on the gas turbines to the Dry Low Nox DLN2.6+ combustion system to improve combustor operability, lessen emissions levels, expand turndown capability and increase hardware inspection intervals.
GE will also supply parts and its Asset Performance Management software in the cloud, and provide repairs and field services. This is likely to enhance asset reliability, availability and productivity to help contribute to the long-term energy security requirements of the country.
Price Performance
In the past year, the GE stock has gained 50.2% against the industry’s 7.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
General Electric currently carries a Zacks Rank #3 (Hold). Some better-ranked companies have been discussed below.
Federal Signal Corporation FSS presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 62.1% in the past year.
ITT Inc. ITT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have rallied 39.7% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 35% in the past year.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
GE
|
T
his morning, I want to focus on a good news story: It is a tale of a massive turnaround and even more massive success, but it will probably have escaped the attention of most investors who don’t have a direct interest in it given how little attention it has received. The turnaround at GE (GE), from a company that was on the edge of bankruptcy a couple of years ago to one whose stock has gained around 90% in the last year, is something that should be celebrated. However, presumably because it has come without any hoopla about AI or controversial statements from its CEO, or anything else that might drive clicks, it has been accomplished very quietly. I must admit though, that when it comes to not writing about GE’s success, I am, until now, as guilty as anyone.
I last wrote about GE in these pages in July of 2021. Not to brag, but looking back, that article was actually quite prescient. In it, I spoke of how the GE CEO, Larry Culp, was focusing on free cash flow above all else. Under previous CEOs, men who in their time were hailed as great businessmen and leaders, GE had been driven into the ground. They had borrowed heavily to finance acquisitions and had started to do so to pay dividends and finance stock buybacks. That wasn’t quite as dumb as it sounds, given that money was basically free at that time, but by July of 2021, eight months before the Fed even considered a rate hike, it was clear that that situation would change before too long. As I wrote at the time, “The recovery from the pandemic is continuing apace, but there are some trying times ahead, with inflationary pressure and supply chain issues that come with such a rapid bounce back.”
Larry Culp was one of the few people who not only saw those problems coming, but also took the painful decisions that were needed to prepare for them. He broke up a company that had for years been the poster child for “big is beautiful,” cut the dividend -- the thing that had almost defined GE as an investment for decades -- to a penny, and implemented a ruthless program of efficiency improvements, all designed to achieve one aim: to generate free cash flow. He succeeded so well that the stock, not even accounting for the spinoffs, has massively outperformed the S&P 500 in the period since I wrote that piece:
There is a lesson here for investors, indeed for us all, that goes way beyond the obvious one of "I should have bought GE back then."
We live in a world so full of bad news that many of us have almost become inured to it. We quickly tire of stories about the horrors of war, whether it is in Ukraine, Gaza, or even when American lives are being lost, and the politics of insult and division have become so commonplace that what would once have been considered shocking personal attacks now barely warrant a mention in the media. In part, that is the fault of me and those like me who write or broadcast for public consumption. Headlines containing words like "crash," "chaos," or "carnage" get a lot more attention than a story that basically says that everything is fine, so it is easier and more profitable to focus on the negative, even if it means ignoring good news.
Good news, though, can often teach us a lot more than bad. Focusing on bad news and taking failure as an object lesson on what to avoid does have its uses, but it still leaves a basic question unanswered: what next? It is fine knowing what not to do, but that doesn’t always help us with what to do. The GE story, of a CEO who focused on cash flow and balance sheet strength rather than flashy acquisitions, and who slaughtered some sacred cows along the way, is an object lesson for others.
Businesses should be about making money, not growing the popularity or ego of the CEO, and making money sometimes means doing things that are unpopular, but that ultimately are right for the times. The problem is that when a business leader does that, the bad news of the unpopular decisions receives a lot of publicity. Should they successfully engineer a turnaround though, it can sometime pass almost unnoticed. Let’s do what we can to put that right in at least this one instance.
Since Larry Culp set about changing things, GE’s stock has outgained the S&P 500 by a factor of eight or nine, and that is a story that should be getting more attention, as is how he did it. He got there by focusing on business fundamentals. He didn’t chase the latest trend or seek personal fame in any way, he just ensured that GE made money. That is something from which everyone, traders, investors, and CEOs alike, can learn.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
GE
|
(RTTNews) - Prolec GE, a subsidiary of the joint venture between General Electric Co. (GE) and the Mexico-based private firm Xignux, Wednesday announced an additional investment of $85 million to meet North American demand for single-phase pad-mount transformers.
The company will increase its manufacturing capacity in Monterrey by equipping a new facility capable of annually duplicating the number of transformers produced at its existing Mexico facility.
Further, utilizing this opportunity Prolec GE will incorporate state-of-the-art manufacturing technology and the new facility will be located less than one mile from its existing location.
Construction of the new plant will begin in 2024 with the project slated to be completed in June 2025.
As per the company, an investment of $85 million to double the single-phase pad-mount transformer manufacturing capacity will help meet its electrification goals while improving grid resiliency, and efficiency.
The latest investment by Prolec GE brings the investment to more than $145 million in North America.
In pre-market activity, GE shares are trading at $122.30, down 0.02% and on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-13
|
GE
|
By Yuka Obayashi
TOKYO, Dec 13 (Reuters) - Japan's industry and land ministries on Wednesday picked three consortia, including one featuring Germany's RWE RWEG.DE and its partners, to operate offshore wind farms in the second round of a public auction.
They said they would award a fourth wind farm that was part of the tender at a later date.
The results of the second major round under a new law to promote wind power were closely watched by energy companies at home and abroad, after the first round was dominated by Mitsubishi Corp 8058.T.
Japan's offshore wind power market is set to grow as the government aims to have 10 gigawatts (GW) of offshore wind farm deals by 2030, and up to 45 GW by 2040, as part of its decarbonisation push.
The winner of a 315-megawatt (MW) wind farm off the coast of Oga-Katagami-Akita in Akita prefecture in northern Japan was a consortium of JERA, Electric Power Development (J-Power) 9513.T, Itochu 8001.T and Tohoku Electric Power 9506.T.
Another consortium of Mitsui & Co 8031.T, RWE and Osaka Gas 9532.T won a 684 MW wind farm off the coast of Murakami-Tainai in Niigata prefecture in northern Japan.
A third group of Sumitomo Corp 8053.T and Tokyo Electric Power's 9501.T renewable power unit won a 420 MW wind farm off the coast of Enoshima in Nagasaki prefecture in southwestern Japan.
The three projects are all bottom-fixed type wind farms and scheduled to start operation between June 2028 and August 2029.
The JERA consortium and the Sumitomo group plan to use Vestas VWS.CO wind turbines, while the Mitsui consortium plans to install General Electric GE.N turbines.
Two to four groups bid on each of the three blocks. The winners achieved the highest evaluation score in terms of bidding price and business feasibility among other criteria, said Takahiro Ishii, director of the wind energy policy office at the industry ministry.
"We have selected the best plans to help achieve Japan's 2030 energy mix goal and curb the public burden of the renewable energy levy," he said.
The ministries plan to announce the winner of the remaining 356 MW farm off the coast of Happo-Noshiro in Akita prefecture in March 2024, as revisions to the plan are needed by the potential operator because the timing of the use of a port overlapped with another Akita project.
(Reporting by Yuka Obayashi Editing by Christian Schmollinger and Mark Potter)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
(RTTNews) - GE Vernova's Grid Solutions business (GE) and MYTILINEOS Energy & Metals (MYTHY) announced Tuesday that they have been awarded a 1 billion British pound contract by National Grid Electricity Transmission and SP Transmission, part of SP Energy Networks (SPEN), for the U.K.'s first high-capacity east coast subsea link.
Specifically, the GE Vernova-MYTILINEOS consortium was selected to supply and construct two High-Voltage Direct Current (HVDC) converter stations for Eastern Green Link 1 (EGL1), a joint venture between National Grid Electricity Transmission and SP Transmission.
GE Vernova, the consortium leader, and MYTILINEOS will provide the engineering works and technology for the two VSC HVDC converter stations, which form the terminals for the HVDC cable and convert the direct current to alternating current enabling the transmission of electricity into the onshore transmission network. The design phase will begin in January 2024. Construction will begin in 2025.
Under the contract, GE Vernova will supply its VSC HVDC technology from its facilities in Stafford, UK, including its second-generation VSC valve and its state-of-the-art eLumina control system. MYTILINEOS will be responsible for engineering, procurement and construction of civil works, balance of plant and installation of all equipment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
|
GE
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As we head into the new year, the one of the biggest trends on many investors’ minds is renewable energy.
The trillion-dollar renewable energy industry is worth a close inspection. Optimism prevails despite some recent downturns in renewable energy companies such as FirstSolar (NASDAQ:FSLR) and Plug Power (NASDAQ:PLUG).
Already, wind and solar energy is dipping to low costs of around $30 to $40 per MWh. In contrast, electricity holds at nearly $150 to $166 per MWh. With increasing Environmental, Social and Governance (ESG) friendliness concerns, countless renewable energy stocks are currently sitting at perfect discounts. Investors stand ready to scoop them up before the year ends.
Let’s explore three undervalued renewable energy stocks that all investors should have on their radar as heading into the holiday season.
General Electric Company (GE)
Source: Sundry Photography / Shutterstock.com
Multinational conglomerate General Electric Company (NYSE:GE) is widely known for its manufacturing and diversified technology and services. However, the business’s renewable energy division is cemented as a leader in green technology and innovation. Yahoo Finance analysts estimate that this stock will trade within a one-year price range of $74 – $131, with an average of $112.
GE will be at the forefront of renewable energy growth due to its strong presence in renewable grid solutions and offshore wind power. Currently, the business is facing a loss, as described in its Q3 earnings call. However, orders still increased by 20% despite the current conditions.
General Electric Company is presently trading at a P/E Ratio of 12.52x, far below the Renewable Industry’s P/E of 83.88x. It appears quite undervalued, compared to many of its peers in the green and renewable energy industry. Also, its 188% year over year (YOY) EPS growth rate indicates the stock is likely positioned to grow well going forward.
Southwestern Energy Company (SWN)
Source: Oil and Gas Photographer / Shutterstock.com
Southwestern Energy Company (NYSE:SWN) explores, and develops more sustainable ways to use natural gas, oil, and natural gas liquids. SWN has a five-year market cap growth rate of 178.86%. Yahoo Finance analysts estimate this stock will trade within a one-year price range of $5.00 to $15.00, with an average of $8.52.
Southwestern Energy Company has implemented innovative drilling techniques to increase its natural gas collection rate. In fact, it is decreasing costs by $690 million over the last year. True, this company may not be entirely focused on renewable energy sources. Yet, it is commited to being one of the lowest carbon-emitting natural gas companies. Also, SWN plans to preserve natural gas as a long-term, responsible energy solution. Further, they are collaborating with renewable energy companies.
The company is likely to be undervalued with a P/E ratio of 1.61x compared to the sector average of 4.47x. Southwestern has an EPS of 4.61, with an average EPS growth rate of 7.24% over the past few years. SWN increased its earnings significantly from $533 million to $5.1 billion over the past five years, an increase of 394.44%. Currently, it boasts an innovation score of 68, higher than the sector’s average of 58.
NextEra Energy Inc. (NEE)
Source: Khanthachai C / Shutterstock.com
NextEra Energy Inc. (NYSE:NEE) is one of North America’s largest providers of wind energy as well as solar. This gives it a unique advantage since it is involved in both production as well as distribution. Yahoo Finance analysts predict the stock will trade within a range of $44 to $103, with an average of $73.
NextEra Energy is deciding to sustain long-term growth. One of them is primarily being the reduction in its estimated partner distribution per unit growth to 6%, nearly half of what it announced previously. Now, it can sustain organic growth without pouring in extra capital. Due to an addition of 3.2 gigawatts of renewable energy to its backlog, all in Q3 alone, it looks promising.
Finally, NextEra Energy has impressive financials, with a P/E ratio of 15.75x, a fraction of the Renewable Industry’s P/E of 83.88x. Also, the company had a strong revenue growth of 38% this past year.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.
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The post The 3 Most Undervalued Renewable Energy Stocks to Buy in December appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
By Scott DiSavino
Dec 15 (Reuters) - U.S. natural gas futures climbed about 4% to a one-week high on Friday on forecasts for higher demand next week than previously expected and as record amounts of gas flow to liquefied natural gas (LNG) export plants.
That price increase came despite record gas production and forecasts for mild weather and lower heating demand in two weeks that should allow utilities to keep pulling less gas from storage than usual through the end of December.
Analysts forecast there was currently around 8.7% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) rose 9.9 cents, or 4.1%, to settle at $2.491 per million British thermal units (mmBtu), their highest close since Dec. 8.
That gain - the third daily price increase in a row - pushed the front-month out of technically oversold territory for the first time in eight days.
The contract, however, was still down about 3% this week, putting it down for a sixth week in a row for the first time since February.
Record production and ample gas in storage weighted on futures prices for weeks and prompted some traders to forecast that prices already peaked this winter (November-March) in November.
Investor interest in trading gas has increased in recent weeks with open interest in NYMEX futures on Dec. 13 at a 26-month high of 1.423 million contracts and shares outstanding in the U.S. Natural Gas Fund (UNG) UNG at a record 197.9 million contracts. UNG is an Exchange Traded Fund (ETF) designed to track the daily price movements of gas.
Analysts, meanwhile, said they expect U.S. prices to rise in coming years as new LNG export plants enter service in the U.S., Canada and Mexico to meet rising global demand for the fuel.
But expected delays at LNG export plants being built by Exxon Mobil XOM.N/QatarEnergy at Golden Pass in Texas and Venture Global LNG at Plaquemines in Louisiana have caused some analysts to reduce their forecasts for U.S. as demand and prices in 2024. NGAS/POLL
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 108.5 bcfd so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain mostly warmer than normal through at least Dec. 30.
But even though the weather will remain mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 125.1 bcfd this week 127.7 bcfd next week with the usual seasonal cooling at this time of year before sliding to 124.1 bcfd during the last week of the year when many businesses and government offices shut for the Christmas holiday.
The forecast for next week was higher than LSEG's outlook on Thursday.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.5 bcfd so far in December, up from a record 14.3 bcfd in November.
Week ended Dec 15 Forecast
Week ended Dec 8 Actual
Year ago Dec 15
Five-year average
Dec 15
U.S. weekly natgas storage change (bcf):
-80
-55
-82
-107
U.S. total natgas in storage (bcf):
3,584
3,664
3,337
3,297
U.S. total storage versus 5-year average
8.7%
7.6%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.40
2.39
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
10.83
11.13
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
15.33
15.46
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
334
330
475
387
416
U.S. GFS CDDs
1
1
3
5
4
U.S. GFS TDDs
335
331
378
392
420
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.1
108.9
108.6
102.8
94.2
U.S. Imports from Canada8
8.8
8.6
8.7
10.0
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
116.9
117.5
117.3
112.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.3
3.4
3.4
3.4
3.2
U.S. Exports to Mexico
3.9
3.8
4.6
5.2
5.0
U.S. LNG Exports
14.5
14.7
14.9
12.6
8.6
U.S. Commercial
13.2
13.8
14.1
15.4
14.6
U.S. Residential
20.9
22.3
22.8
25.8
24.7
U.S. Power Plant
33.2
34.2
34.9
30.4
28.6
U.S. Industrial
24.3
24.6
24.8
24.7
25.0
U.S. Plant Fuel
5.3
5.4
5.4
5.3
5.3
U.S. Pipe Distribution
2.7
2.7
2.8
2.7
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
99.8
103.2
104.9
104.4
101.2
Total U.S. Demand
121.4
125.1
127.7
125.6
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
82
83
83
107
81
Jan-Jul
81
81
77
102
79
Oct-Sep
81
82
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 15
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Wind
11
12
10
11
9
Solar
3
3
3
3
3
Hydro
6
5
6
6
6
Other
2
2
2
2
2
Petroleum
Natural Gas
41
40
42
39
42
Coal
17
17
17
16
17
Nuclear
20
21
20
22
21
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.39
2.33
Transco Z6 New York NG-CG-NY-SNL
1.74
2.04
PG&E Citygate NG-CG-PGE-SNL
3.85
4.22
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.64
1.74
Chicago Citygate NG-CG-CH-SNL
2.12
2.02
Algonquin Citygate NG-CG-BS-SNL
2.02
3.20
SoCal Citygate NG-SCL-CGT-SNL
3.60
4.25
Waha Hub NG-WAH-WTX-SNL
1.94
1.85
AECO NG-ASH-ALB-SNL
1.25
1.23
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
28.25
35.50
PJM West EL-PK-PJMW-SNL
32.50
38.25
Ercot North EL-PK-ERTN-SNL
22.00
23.50
Mid C EL-PK-MIDC-SNL
51.00
62.13
Palo Verde EL-PK-PLVD-SNL
52.25
56.25
SP-15 EL-PK-SP15-SNL
54.50
54.50
(Reporting by Scott DiSavino; editing by Diane Craft )
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Walmart Inc (Symbol: WMT), where a total of 80,235 contracts have traded so far, representing approximately 8.0 million underlying shares. That amounts to about 75.4% of WMT's average daily trading volume over the past month of 10.6 million shares. Especially high volume was seen for the $155 strike call option expiring December 15, 2023, with 7,910 contracts trading so far today, representing approximately 791,000 underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $155 strike highlighted in orange:
Zions Bancorporation, N.A. (Symbol: ZION) options are showing a volume of 16,416 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 75.3% of ZION's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $37.50 strike put option expiring January 19, 2024, with 4,500 contracts trading so far today, representing approximately 450,000 underlying shares of ZION. Below is a chart showing ZION's trailing twelve month trading history, with the $37.50 strike highlighted in orange:
And General Electric Co (Symbol: GE) saw options trading volume of 27,994 contracts, representing approximately 2.8 million underlying shares or approximately 73.1% of GE's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $105 strike call option expiring March 15, 2024, with 18,016 contracts trading so far today, representing approximately 1.8 million underlying shares of GE. Below is a chart showing GE's trailing twelve month trading history, with the $105 strike highlighted in orange:
For the various different available expirations for WMT options, ZION options, or GE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Dividend Stocks
FOSL market cap history
VO shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
Fintel reports that on December 15, 2023, Wells Fargo upgraded their outlook for General Electric (NYSE:GE) from Equal-Weight to Overweight .
Analyst Price Forecast Suggests 7.34% Upside
As of November 27, 2023, the average one-year price target for General Electric is 130.25. The forecasts range from a low of 85.04 to a high of $157.50. The average price target represents an increase of 7.34% from its latest reported closing price of 121.35.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for General Electric is 81,908MM, a decrease of 2.27%. The projected annual non-GAAP EPS is 4.38.
For more in-depth coverage of General Electric, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 2610 funds or institutions reporting positions in General Electric. This is an increase of 134 owner(s) or 5.41% in the last quarter. Average portfolio weight of all funds dedicated to GE is 0.42%, an increase of 9.20%. Total shares owned by institutions decreased in the last three months by 0.66% to 984,282K shares.
The put/call ratio of GE is 0.86, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital Research Global Investors holds 84,153K shares representing 7.73% ownership of the company. In it's prior filing, the firm reported owning 92,560K shares, representing a decrease of 9.99%. The firm decreased its portfolio allocation in GE by 5.98% over the last quarter.
Capital International Investors holds 53,935K shares representing 4.96% ownership of the company. In it's prior filing, the firm reported owning 54,262K shares, representing a decrease of 0.61%. The firm increased its portfolio allocation in GE by 5.20% over the last quarter.
TCI Fund Management holds 41,650K shares representing 3.83% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 37,554K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 41,693K shares, representing a decrease of 11.02%. The firm decreased its portfolio allocation in GE by 4.67% over the last quarter.
AIVSX - INVESTMENT CO OF AMERICA holds 37,121K shares representing 3.41% ownership of the company. In it's prior filing, the firm reported owning 39,104K shares, representing a decrease of 5.34%. The firm decreased its portfolio allocation in GE by 1.23% over the last quarter.
General Electric Background Information
(This description is provided by the company.)
The General Electric Company (GE) is an American multinational company. For more than 125 years, GE has invented the future of industry. Today, GE is best known for its work in the Power, Renewable Energy, Aviation and Healthcare industries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
By Shristi Achar A and Johann M Cherian
Dec 15 (Reuters) - The S&P 500 and the Dow were poised for a subdued open on Friday after comments from a U.S. Federal Reserve official dampened recent upbeat sentiment.
New York Fed President John Williams said in a CNBC interview it was "premature" to think about interest rate cuts.
The Fed left interest rates unchanged on Wednesday, acknowledging slowing inflation and indicated lower borrowing costs were on the horizon, causing the Dow Jones Industrial Average .DJI to notch its second straight record high close on Thursday.
Money markets now see a 64.3% chance of at least a 25-basis point rate cut as soon as March 2024, down from nearly 80% before the interview, while still pricing in a 91% chance of another cut in May 2024, according to CME Group's FedWatch tool.
"It's not unusual for Fed speakers to try to walk back outsize reactions to any particular Fed meeting, whether positive or negative," Art Hogan, chief market strategist at B Riley Wealth, said.
Despite session's move, the dovish turn of events this week caused equities to rally, with the benchmark S&P 500 .SPX eyeing its longest weekly winning streak since September 2017.
U.S. Treasury yields fell below 4% to multi-month lows, with yield on the benchmark 10-year Treasury note US10YT=RR last standing at 3.9502%. US/
Markets will now parse the S&P Global Composite Flash PMI data for December, due after the opening bell.
Meanwhile, the expiry of quarterly derivatives contracts tied to stocks, index options and futures, also known as "triple witching", later in the day could potentially stoke market volatility, although stock swings have been muted recently.
At 8:57 a.m. ET, Dow e-minis 1YMcv1 were up 4 points, or 0.01%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.04%, and Nasdaq 100 e-minis NQcv1 were up 27 points, or 0.16%.
Among stocks, General ElectricGE.N gained 1.4% before the bell after Wells Fargo upgraded the industrial conglomerate's shares to "overweight" from "neutral".
Costco WholesaleCOST.O rose 2% after the retailer topped Wall Street estimates for first-quarter results due to demand for cheaper groceries.
Darden RestaurantsDRI.N slipped 1.9% after the Olive Garden owner forecast annual same-store sales below estimates.
First Solar FSLR.O and Enphase Energy ENPH.O added 2.5% and 2.6%, respectively, as Jefferies started coverage of the solar companies with a "buy" rating.
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta)
((Shristi.AcharA@thomsonreuters.com; https://twitter.com/ShristiAchar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-12
|
GE
|
Abbott today announced that its board of directors has increased the company's quarterly common dividend to 55 cents per share, an increase of 7.8%. This marks the company's 52nd consecutive year of dividend growth. It will be the 400th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Feb. 15, 2024, to shareholders of record at the close of business on Jan. 12, 2024. Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
The Board of Directors of GE today declared a $0.08 per share dividend on the outstanding common stock of the Company. The dividend is payable January 25, 2024, to shareholders of record at the close of business on December 28, 2023. The ex-dividend date is December 27, 2023.
Pfizer today announced that its board of directors declared an increase in the quarterly cash dividend on the company's common stock to $0.42 for the first-quarter 2024 dividend, payable March 1, 2024, to holders of the Common Stock of record at the close of business on January 26, 2024. The first-quarter 2024 cash dividend will be the 341st consecutive quarterly dividend paid by Pfizer.
Equity Residential today announced that its Board of Trustees declared quarterly dividends on the Company's common and preferred shares. A regular common share dividend for the fourth quarter of $0.6625 per share will be paid on January 12, 2024 to shareholders of record on January 2, 2024.
The Board of Directors of Nucor today announced the increase of its regular quarterly cash dividend on Nucor's common stock to $0.54 per share. This cash dividend is payable on February 9, 2024 to stockholders of record on December 29, 2023 and is Nucor's 203rd consecutive quarterly cash dividend. Nucor has increased its regular, or base, dividend for 51 consecutive years - every year since it first began paying dividends in 1973.
VIDEO: Daily Dividend Report: ABT,GE,PFE,EQR,NUE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
GE
|
Updates with settlement price
Dec 11 (Reuters) - U.S. natural gas futures slid more than 10% to a near six-month low on Monday, hurt by ample output while mild weather limited heating demand.
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange settled 14.40 cents lower, or 15%, at $2.44 per million British thermal units (mmBtu), its lowest level since mid-June.
The fundamental reasons why the prices are dropping drastically are "record production, higher Canadian exports, lukewarm and late arriving domestic demand, and high foreign gas storage levels," said Zhen Zhu, managing consultant at C.H. Guernsey and Co in Oklahoma City.
"I believe the market is betting against a colder than normal winter in January and February, but the market may be reasonable as most of longer term weather forecasts are calling for a warmer than normal if not normal remaining winter."
With record production levels and ample storage, gas futures have been sending bearish signals for weeks that prices for this winter (November-March) likely already peaked in November. The contract was down about 8% last week.
Financial firm LSEG said average gas output in the Lower 48 U.S. states was at 108.5 bcfd so far in December from a record 108.3 bcfd in November.
Traders have noted that mild weather and near record output should cap the amount of gas utilities pull from storage in coming weeks. EIA/GAS
The continental United States entered the winter heating season with the most natural gas in storage since 2020, the U.S. Energy Information Administration (EIA) said last week.
"Further price decline to the $2.20 area and ultimately toward the $2 mark would appear to be the most likely course given this unusually mild start to the heavy usage cycle," said analysts at energy advisory Ritterbusch and Associates in a note.
LSEG forecast U.S. gas demand in the Lower 48, including exports, would stay steady at 123.8 bcfd next week from 123.7 bcfd forecast this week.
U.S. energy firms last week added oil and natural gas rigs for a fourth week in a row for the first time since November 2022, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.
The U.S. is on track to become the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar. Much higher global prices have fed demand for U.S. exports due in part to supply disruptions and sanctions linked to the war in Ukraine.
Gas was trading around $11 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe TRNLTTFMc1 and $15.98 at the Japan Korea Marker (JKM) in Asia JKMc1. NG/EU
Week ended Dec 8 Forecast
Week ended Dec 1 Actual
Year ago Dec 8
Five-year average
Dec 8
U.S. weekly natgas storage change (bcf):
-48
-117
-46
-81
U.S. total natgas in storage (bcf):
3,671
3,719
3,419
3,404
U.S. total storage versus 5-year average
7.8%
6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.38
2.59
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
11.57
12.59
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
15.98
16.05
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
322.9
340
321.2
344
354
U.S. GFS CDDs
1.9
2
12.5
6.5
5.9
U.S. GFS TDDs
324.8
342
333.7
350.5
359.9
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.1
109.0
108.9
102.7
94.2
U.S. Imports from Canada8
8.8
8.6
9.2
9.1
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
116.9
117.6
118.1
111.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.3
3.5
3.5
3.3
3.2
U.S. Exports to Mexico
3.9
4.3
5.0
5.6
5.0
U.S. LNG Exports
14.5
14.8
14.3
11.7
8.6
U.S. Commercial
13.2
13.9
13.7
13.5
14.6
U.S. Residential
20.9
22.4
22.0
21.8
24.7
U.S. Power Plant
33.2
31.9
32.5
30.9
28.6
U.S. Industrial
24.3
24.6
24.6
24.1
25.0
U.S. Plant Fuel
5.3
5.4
5.4
5.4
5.3
U.S. Pipe Distribution
2.7
2.7
2.7
2.9
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
99.8
101.1
101.1
98.7
101.2
Total U.S. Demand
121.4
123.7
123.8
119.3
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
--
85
83
107
81
Jan-Jul
--
85
77
102
79
Oct-Sep
--
85
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Week ended Nov 10
Wind
12
10
11
9
11
Solar
3
3
3
3
4
Hydro
5
6
6
6
5
Other
2
2
2
2
2
Petroleum
Natural Gas
40
42
39
42
41
Coal
17
17
16
17
16
Nuclear
21
20
22
21
20
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.57
2.52
Transco Z6 New York NG-CG-NY-SNL
1.99
2.00
PG&E Citygate NG-CG-PGE-SNL
3.84
3.98
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.85
1.85
Chicago Citygate NG-CG-CH-SNL
2.23
2.13
Algonquin Citygate NG-CG-BS-SNL
2.35
3.24
SoCal Citygate NG-SCL-CGT-SNL
3.23
3.53
Waha Hub NG-WAH-WTX-SNL
1.21
0.97
AECO NG-ASH-ALB-SNL
1.87
1.38
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
34.75
58.75
PJM West EL-PK-PJMW-SNL
25.25
29.50
Ercot North EL-PK-ERTN-SNL
16.00
21.00
Mid C EL-PK-MIDC-SNL
72.29
70.00
Palo Verde EL-PK-PLVD-SNL
33.75
41.00
SP-15 EL-PK-SP15-SNL
32.50
36.25
(Reporting by Anjana Anil and Ashitha Shivaprasad in Bengaluru; Editing by Sharon Singleton and Nick Zieminski)
((Anjana.Anil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
GE
|
Honeywell International Inc. HON has inked a deal to acquire Carrier Global Corporation’s CARR Global Access Solutions business for an all-cash deal of $4.95 billion. The deal value is equivalent to 13x 2023E EBITDA (inclusive of tax benefits and run-rate cost synergies). This acquisition will boost HON’s building technologies business.
Florida-based Carrier is a provider of advanced heating, ventilation, refrigeration, air conditioning, fire, security and building automation technologies. Carrier’s core operational geographic regions include the United States, Europe, Asia-Pacific and other regions. Its Global Access Solutions business provides residential, commercial and industrial security systems.
With this acquisition, Honeywell will add three Access Solutions brands to its portfolio, namely, LenelS2 (which offers products like OnGuard and NetBox that are used by many Fortune 100 clients), Onity (provides electronic locks, including hospitality access, mobile credentials, and self-storage access) and Supra (its cloud-based electronic real estate lockboxes provides mobile credentials and access management).
Further, this move is strategic as it includes both hardware and software solutions to support the company’s plan to align its portfolio to three megatrends comprising automation, the future of aviation and energy transition, underpinned by robust digitalization capabilities and solutions. The Carrier unit’s acquisition also positions HON to become a leading provider of security solutions for the digital age.
Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close by the end of the third quarter of 2024. The company expects the buyout to be cash-earnings per share accretive in the first full year of possession. Following the deal closure, the two companies will be able to advance innovation and provide cloud-based services and solutions to the customers.
Price Performance
In the past year, the HON stock has lost 9.3% compared with the industry’s 8.7% decrease.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Honeywell currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Conglomerates sector have been discussed below.
Federal Signal Corporation FSS presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 55.2% in the past year.
General Electric Company GE presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for General Electric’s 2023 earnings has increased 14.2% in the past 60 days. Shares of GE have jumped 44.9% in the past year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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General Electric Company (GE) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Federal Signal Corporation (FSS) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
GE
|
For Immediate Release
Chicago, IL – December 11, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Electric Co. GE, 3M Co. MMM, ITT Inc. ITT, Markel Group Inc. (MKL) and Honeywell International Inc. HON.
Here are highlights from Friday’s Analyst Blog:
Watch These Big 5 Multi-Sector Conglomerates for 2024
Wall Street has been witnessing an impressive rally in 2023 buoyed by steadily decreasing inflation and a simultaneous reduction in the magnitude and number of interest rate hikes by the Fed. Investors' growing belief that the central bank will halt rate hikes amid cooling inflation is turning attention to potential rate cuts in the upcoming year.
According to CME's FedWatch tool, traders are currently associating nearly 100% probability that the central bank will keep the benchmark lending rate unchanged at the range of 5.25-5.5% in the December FOMC meeting. Moreover, 62% of respondents expect the first rate cut to be initiated in the March 2024 FOMC meeting.
A likely rate cut in 2024 will be immensely helpful for multi-sector-conglomerates. Lower market interest rates will reduce the cost of funds thereby enabling companies to undertake projects and increase capital expenditure. Multi-sector conglomerate stocks offer solid diversification to investors' portfolios. Their diverse operations are ideal for exposure to a variety of markets.
Our Top Picks
We have narrowed our search to five multi-sector conglomerates that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days.
General Electric Co. has been benefiting from the strong performance of the Aerospace unit, driven by robust demand and solid execution in commercial engines and services. With strength in GE Gas Power services and growth at Grid business and Onshore Wind in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise. Due to these tailwinds, GE has raised its 2023 guidance.
General Electric has an expected revenue and earnings growth rate of 8.5% and 69%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.2% over the past 60 days. GE currently carries a Zacks Rank #3 (Hold).
3M Co. has benefited from strength in roofing granules, auto original equipment manufacturer and medical solutions businesses. Improvement in supply chains and easier availability of labor and raw materials should drive MMM's performance in 2023. Pricing actions and restructuring savings are aiding MMM's margins.
3M has an expected revenue and earnings growth rate of 2% and 8%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.8% over the past 30 days. MMM currently carries a Zacks Rank #2 (Buy).
ITT Inc. has been benefiting from strength across its industrial, aerospace and defense end-markets and strong operational execution. Solid momentum in the aftermarket business, driven by strength in energy and mining markets, is aiding the Industrial Process unit.
Growth in component sales within the aerospace and defense markets is supporting the Connect & Control Technologies unit. ITT's innovation investments are likely to support its growth. ITT's shareholder-friendly policies are praiseworthy.
ITT has an expected revenue and earnings growth rate of 4.9% and 11.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past 30 days. ITT currently carries a Zacks Rank #1 (Strong Buy). You can seethe complete list of today's Zacks #1 Rank stocks here.
Markel Group Inc. strives to grow via acquisitions and organic initiatives to diversify its portfolio and expand its international footprint. Solid performance in the Insurance segment should drive premiums. MKL benefits from its niche focus and effective management of insurance risk.
MKL is banking on the strength of its underwriting, investment and Markel Ventures operations, which position it well for long-term growth and offer a sturdy capital position that enables it to deploy capital effectively. MKL looks to double the size of its insurance operations.
Markel Group has an expected revenue and earnings growth rate of 7.2% and 16.8%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.2% over the past 30 days. MKL currently carries a Zacks Rank #3.
Honeywell International Inc. has benefitted from strength in the commercial aviation, defense and space, aerospace and process solutions businesses. Solid operational execution, pricing actions and cost-control measures continue to drive the company's top line. HON's bullish forecast for 2023 holds promise. HON's recent acquisition of Compressor Controls enhances its expertise in industrial control, automation and process solutions.
Honeywell International has an expected revenue and earnings growth rate of 5.2% and 8.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past 30 days. HON currently carries a Zacks Rank #3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
GE
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $67.1 million dollar outflow -- that's a 1.0% decrease week over week (from 125,070,000 to 123,820,000). Among the largest underlying components of SPHQ, in trading today ConocoPhillips (Symbol: COP) is up about 2.5%, General Electric Co (Symbol: GE) is down about 0.6%, and Honeywell International Inc (Symbol: HON) is higher by about 0.4%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average:
Looking at the chart above, SPHQ's low point in its 52 week range is $43.0402 per share, with $53.87 as the 52 week high point — that compares with a last trade of $53.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
Warren Buffett Dividend Stock Portfolio
HPS Historical Stock Prices
EPP Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
GE
|
With markets looking a quite bullish these days, I thought it would be a good time to look at our Naked Put Screener.
But first, let’s find some stocks with high implied volatility.
High volatility means high option premiums for many stocks.
Implied volatility rank, or IV Rank for short, is a good way to see if the current level of implied volatility for a stock is high or low compared to the last twelve months.
An IV Rank of 100% means the current level of implied volatility is the highest it has been in the last twelve months.
An IV Rank of 0% means the current level of implied volatility is the lowest it has been in the last twelve months.
When IV Ranks is high, it can be a good idea to look at option selling strategies such as naked puts, bull put spreads, bear call spreads and iron condors.
Let’s take a look at some large cap stocks with an IV Percentile above 50%.
The parameters for this screener are:
IV Percentile above 50%
Market Cap above 40B
Total Call Volume above 2000
The above list of stocks gives us a starting point to do some more research on with a view to selling options.
Let’s go over to the Naked Puts Screener and see what that shows us.
Naked Put Screener
Here we have the results from the Naked Put Screener. We can see stocks such as Taiwan Semiconductor (TSM), Fedex (FDX), Rio Tinto (RIO), Petroleo Brasileiro (PBR), Nike (NKE) and General Electric (GE).
The parameters for this screener are as follows. I customized these slightly from the Barchart default preferences.
Market Cap above 40 billion
Days to expiration 15-45
Option volume greater than 50
Open Interest greater than 100
Moneyness -15% to -5%
Let’s now add a parameter for IV Percentile greater than 50% and only include stock with a Buy rating. Here are the results:
One way to take ownership of a stock for less than the current price is via an option strategy called a cash-secured put.
A cash-secured put is a slightly less bullish trade than buying the stock. It is considered a neutral to slightly bullish trade.
A cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. The goal is to either have the put expire worthless and keep the premium or be assigned and acquire the stock below the current price.
Selling put options is an easy place for investors to start with options. They are like a covered call and are pretty easy to understand once you know the basics.
Traders selling puts should understand that they may be assigned 100 shares at the strike price.
FDX Naked Put Example
Let’s look at the first line item as an example, a trader selling the January 19th, $260-strike put on FDX would receive $390 into their account, which would be theirs to keep.
If FDX falls below $260 by January 19th, they would be required to buy 100 shares at $260. The effective net cost of the position would be $256.10, thanks to the option premium received.
That is 6.92% below yesterday’s closing price.
If the stock stays above $260 at expiry, the put expires worthless, leaving the trader with a 1.50% return on capital at risk.
That works out to be 15.4% annualized.
The main risk with the trade is similar to outright stock ownership. If the stock falls quickly, the trade will suffer a loss. However, the premium received will help to offset the loss.
The maximum loss on the trade would occur if FDX fell to $0, which would see the trade lose $25,610 but most traders would cut losses long before then.
Cash-secured puts are a great way to generate a return on strong stocks, potentially without ever having to take ownership.
If the put does get assigned, the investor takes ownership with a reduced cost base and can potentially begin selling covered calls to generate additional income from the position.
Barchart’s Naked Put Screener can be a great way to find option trade ideas.
Please remember that options are risky, and investors can lose 100% of their investment.
This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
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Up 150% YTD, Should You Ride the Uber Stock Rally?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-10
|
GE
|
Five years ago, General Electric (NYSE: GE) was seen by many as a company whose very survival was at stake. However, those fears proved overly pessimistic, and its stock rose 166% over that period.
It's a superb performance, notably as it occurred under some tough conditions for the company, with some bad luck along the way. The question is whether it can continue to generate good returns for investors.
General Electric's transformation
The company's renaissance coincides with the appointment of Larry Culp as CEO in October 2018. He took over a heavily indebted company with a collection of underperforming businesses, not least its problematic power segment.
Culp's solution to the problem was a combination of significant portfolio restructuring, business sales, cash-raising spinoffs, and excellent execution in difficult trading conditions. I'll come back to the last point in a moment.
Of the business Culp took over in 2018, GE Transportation is now part of Wabtec, and GE Lighting was sold to Savant Systems. GE Healthcare sold its biopharma business to Culp's former company, Danaher, and then GE Healthcare was spun off in early 2023. GE sold down its stake in oil and gas company Baker Hughes, and GE Capital Aviation Services was sold to AerCap.
These corporate maneuvers left GE a much smaller company (GE ended 2018 with $122 billion in revenue) and is forecast to end 2023 with closer to $65 billion.
With GE Healthcare now a stand-alone company, the next stage in the company's evolution will be the spinoff of GE Vernova in 2024 (a combination of GE Power and GE Renewable Energy), leaving the remaining company to be called GE Aerospace.
General Electric's execution
The business sales, spinoffs, and stock sales have allowed GE to reduce its debt and allay any liquidity fears -- no mean feat, as the pandemic hit GE's aviation business hard. But it's only part of the story.
GE Net Financial Debt (Quarterly) data by YCharts
As noted, GE's execution has tangibly improved over the last five years under Culp. It's a critical point because the case for buying GE stock now (remember that this will give you exposure to GE Aerospace and GE Vernova if you buy it before the separation) is based on GE's end markets, operational execution, and administration. In other words, it isn't about a successful portfolio restructuring and debt reduction plan.
Two examples of General Electric's execution
To outline how Culp's focus on lean operations has worked, consider the turnaround at GE Power. Revenues have fallen, but margins and profitability have gone the other way. Moreover, management expects the 7.5% profit margin in 2022 to rise to double digits in 2024.
Data source: GE presentations.
In a nutshell, GE Power worked through less profitable contracts while initiating more discipline on pricing new contracts and implementing lean initiatives to generate productivity improvements. An example of the latter comes from reducing the number of shifts it takes to complete a power outage for customers. This action adds value to customers and allows GE Power to complete more outages.
Where next for General Electric?
With the aerospace business continuing to benefit from the recovery in commercial air travel and the power business now firmly established as a solid earnings and cash flow contributor, management needs to return the renewable energy business to profitability.
Image source: Getty Images.
GE Renewable Energy has three businesses. Onshore wind and grid solutions are both profitable. However, management needs to repeat its GE Power playbook with the offshore wind business as it works through a $6 billion backlog with a "problematic financial profile," according to Culp.
Given the experience with the turnaround at GE Power and how it helped the stock deliver stellar returns for investors, investors can feel positive that management will turn around the $1 billion loss expected for offshore wind in 2023. It will take time to work, but patient investors gave GE time from 2018 to 2023 and were handsomely rewarded.
Should you invest $1,000 in General Electric right now?
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Danaher and Westinghouse Air Brake Technologies. The Motley Fool recommends AerCap. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-09
|
GE
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At the end of 2022, global wind power generation accounted for roughly 7.33% of electricity production. However, the currency expansion rates still fall critically short of putting major nations on track to meet 2050 net-zero emissions goals. Recognizing the gap, the International Energy Agency has urged doubling the rate of wind power growth in coming years. This situation creates an opportunity to buy wind stocks at discounted prices before faster industry growth kicks in.
Below, I’ve highlighted three wind stocks to buy. All three come with buy ratings (or better) from analysts and are poised to ride the accelerating shift to renewable wind energy. Let’s get started.
General Electric Company (GE)
Source: Sundry Photography / Shutterstock.com
General Electric Company (NYSE:GE) has been around for over 130 years. Headquartered in Boston, this American multinational conglomerate manufactures jet engines, wind turbines, and medical machines for various industries.
GE’s most recent report indicates orders are up 18% year-over-year, hitting $17.9 billion. Meanwhile, adjusted revenue is $16.5 billion, up 18% from last year. Additionally, the stock’s EPS reached $0.82, exceeding estimates by 46.43%.
General Electric announced in 2021 that it would split the company between aviation, healthcare, and energy. Looking ahead to 2024, the company’s energy segment, GE Vernova, will spin off from the parent company in Q2, listed as GEV on the New York Stock Exchange. This precedent was set by GE HealthCare Technologies Inc. (NASDAQ:GEHC) which split off earlier this year and trades well above its IPO.
Analysts are bullish on GE, setting a high target of $150 and issuing GE a strong buy rating.
NextEra Energy, Inc. (NEE)
Source: IgorGolovniov/Shutterstock.com
NextEra Energy, Inc. (NYSE:NEE) has become one of the world’s largest electric utility companies with over 58 gigawatts of power generation capacity. The company’s largest subsidiary is Florida Power & Light (FLP) which provides electricity to about 5.8 million customer accounts. However, most of NextEra’s rise is fueled by its fast-growing renewable energy business, NextEra Energy Resources (NEER) which focuses on global wind and solar power production.
NextEra also reported a solid third quarter. Impressively, NEE’s diverse portfolio generated over $20 billion in annual revenue last year. Total revenue was $7.17 billion with an EPS of $0.94, exceeding estimates by 9.3%. NEER had a remarkable 21% adjusted earnings surge, fueled by renewable energy investments. Adding 3,245 megawatts of renewable and storage to the backlog further emphasizes NEE’s commitment to sustainable energy.
With its 10.6% year-to-date adjusted EPS growth, a 3.19% dividend yield, and an estimated 64% upside potential based on analyst’s prediction of a $96 high, NEE could be an ideal investment. It’s no wonder analysts have been rating the company as a strong buy.
TPI Composite (TPIC)
Source: Khanthachai C / Shutterstock.com
TPI Composites (NASDAQ:TPIC) is a speculative pick for this list, since the company has manufactured turbine wind blades out of specialty materials since 2001. Headquartered in Scottsdale, Arizona, TPI operates factories globally and supplies over 38% of the international onshore wind market outside China. TPI predicts their wind blade production from 2018 to 2022 could reduce 1.7 billion metric tons of CO2 emissions globally.
In its Q3 report, the company reported a 3% decline in net sales to $373 million. This included a net loss of $72.8 million. Luckily, the loss was influenced by one-off events, including the Proterra bankruptcy and incremental warranty expenses. Their adjusted EBITDA shows the temporary setback, recording a loss of $27.4 million compared to the $5.1 million profit this quarter last year.
Despite these challenges, TPI actively addressed concerns through working capital initiatives, including the sale of a facility in China. These efforts have resulted in an unrestricted cash balance of $161 million.
Since the stock has taken quite the beating this year, this might be a good time to add TPIC to your portfolio. As I said, the loss was largely caused by the one-offs and seem to be in the past. And to be sure, analysts are still cautiously optimistic about the stock, issuing TPI a buy rating with a projected high price target of $8. This is far above the current price of around $2.48 per share. However, if you’re going to buy in, it might be best to keep the positions small until we have at least a few good quarters in the rear-view mirror.
As of the date of publication, Rick Orford did not have any positions (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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The post 3 Wind Stocks to Buy for a Sustainable and Profitable Future appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-08
|
GE
|
By Scott DiSavino
Dec 8 (Reuters) - U.S. natural gas futures held steady on Friday as record liquefied natural gas (LNG) exports offset forecasts for milder weather and lower heating demand through late December.
Traders noted the combination of mild weather and near record output should limit the amount of gas utilities pull from storage in coming weeks.
Analysts forecast there was currently about 7.8% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Looking to 2024, analysts started to reduce U.S. demand forecasts after Exxon MobilXOM.N delayed the planned first liquefied natural gas (LNG) production from its Golden Pass export plant under construction in Texas to the first half of 2025 from the second half of 2024.
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange fell 0.4 cents, or 0.2%, to settle at $2.581 per million British thermal units (mmBtu). The front-month remained technically oversold with a Relative Strength Index (RSI) below 30 for a third day in a row for the first time since February. Earlier this week, the contract traded at a three-month low.
With record production levels and ample storage, gas futures have been sending bearish signals for weeks that prices for this winter (November-March) likely already peaked in November.
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states slid to 108.1 bcfd so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain mostly warmer-than-normal through Dec. 23.
But with the normal seasonal cooling going into winter, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 121.3 bcfd this week to 124.8 bcfd next week and 127.3 bcfd in two weeks.
The forecast for next week was lower than LSEG's outlook on Thursday.
U.S. pipeline exports to Mexico, meanwhile, fell to an average of 3.9 bcfd so far in December, down from 5.6 bcfd in November and a record 7.0 bcfd in August.
Analysts, however, expect exports to Mexico to rise in coming months once U.S. energy company New Fortress Energy's NFE.O plant in Altamira starts pulling in U.S. gas to turn into LNG for export in December.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.5 bcfd so far in December, up from a record 14.3 bcfd in November.
The U.S. is on track to become the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar. Much higher global prices have fed demand for U.S. exports due in part to supply disruptions and sanctions linked to the war in Ukraine.
Gas was trading around $12 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe TRNLTTFMc1 and $16 at the Japan Korea Marker (JKM) in Asia JKMc1. NG/EU
Week ended Dec 8 Forecast
Week ended Dec 1 Actual
Year ago Dec 8
Five-year average
Dec 8
U.S. weekly natgas storage change (bcf):
-48
-117
-46
-81
U.S. total natgas in storage (bcf):
3,671
3,719
3,419
3,404
U.S. total storage versus 5-year average
7.8%
6.7%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.59
2.59
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
12.59
12.79
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
16.05
16.01
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
340
338
362
367
398
U.S. GFS CDDs
2
2
11
6
4
U.S. GFS TDDs
342
340
373
373
402
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
109.0
108.1
107.9
102.7
94.2
U.S. Imports from Canada8
8.6
8.8
8.9
9.1
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
117.5
116.9
116.8
111.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
2.5
3.3
3.4
3.3
3.2
U.S. Exports to Mexico
4.8
3.9
5.0
5.6
5.0
U.S. LNG Exports
14.1
14.5
14.3
11.7
8.6
U.S. Commercial
15.5
13.2
14.0
13.5
14.6
U.S. Residential
25.5
20.9
22.6
21.8
24.7
U.S. Power Plant
33.8
33.1
32.6
30.9
28.6
U.S. Industrial
25.3
24.3
24.7
24.1
25.0
U.S. Plant Fuel
5.4
5.3
5.3
5.4
5.3
U.S. Pipe Distribution
2.9
2.7
2.7
2.9
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
108.6
99.6
102.1
98.7
101.2
Total U.S. Demand
130.0
121.3
124.8
119.3
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
85
86
83
107
81
Jan-Jul
85
84
77
102
79
Oct-Sep
85
85
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Week ended Nov 10
Wind
10
10
11
9
11
Solar
3
3
3
3
4
Hydro
5
6
6
6
5
Other
2
2
2
2
2
Petroleum
Natural Gas
41
42
39
42
41
Coal
17
17
16
17
16
Nuclear
21
20
22
21
20
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.52
2.76
Transco Z6 New York NG-CG-NY-SNL
2.00
2.73
PG&E Citygate NG-CG-PGE-SNL
3.98
4.89
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.85
2.09
Chicago Citygate NG-CG-CH-SNL
2.13
2.33
Algonquin Citygate NG-CG-BS-SNL
3.24
9.90
SoCal Citygate NG-SCL-CGT-SNL
3.53
4.30
Waha Hub NG-WAH-WTX-SNL
0.97
1.01
AECO NG-ASH-ALB-SNL
1.38
1.56
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
58.75
117.25
PJM West EL-PK-PJMW-SNL
29.50
47.75
Ercot North EL-PK-ERTN-SNL
21.00
24.75
Mid C EL-PK-MIDC-SNL
70.00
69.60
Palo Verde EL-PK-PLVD-SNL
41.00
45.25
SP-15 EL-PK-SP15-SNL
36.25
42.00
(Reporting by Scott DiSavino Editing by Marguerita Choy and David Gregorio)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-08
|
GE
|
Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-08
|
GE
|
Wall Street has been witnessing an impressive rally in 2023 buoyed by steadily decreasing inflation and a simultaneous reduction in the magnitude and number of interest rate hikes by the Fed. Investors' growing belief that the central bank will halt rate hikes amid cooling inflation is turning attention to potential rate cuts in the upcoming year.
According to CME’s FedWatch tool, traders are currently associating nearly 100% probability that the central bank will keep the benchmark lending rate unchanged at the range of 5.25-5.5% in the December FOMC meeting. Moreover, 62% of respondents expect the first rate cut to be initiated in the March 2024 FOMC meeting.
A likely rate cut in 2024 will be immensely helpful for multi-sector-conglomerates. Lower market interest rates will reduce the cost of funds thereby enabling companies to undertake projects and increase capital expenditure. Multi-sector conglomerate stocks offer solid diversification to investors’ portfolios. Their diverse operations are ideal for exposure to a variety of markets.
Our Top Picks
We have narrowed our search to five multi-sector conglomerates that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
General Electric Co. GE has been benefiting from the strong performance of the Aerospace unit, driven by robust demand and solid execution in commercial engines and services. With strength in GE Gas Power services and growth at Grid business and Onshore Wind in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise. Due to these tailwinds, GE has raised its 2023 guidance.
General Electric has an expected revenue and earnings growth rate of 8.5% and 69%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.2% over the past 60 days. GE currently carries a Zacks Rank #3 (Hold).
3M Co. MMM has benefited from strength in roofing granules, auto original equipment manufacturer and medical solutions businesses. Improvement in supply chains and easier availability of labor and raw materials should drive MMM’s performance in 2023. Pricing actions and restructuring savings are aiding MMM’s margins.
3M has an expected revenue and earnings growth rate of 2% and 8%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.8% over the past 30 days. MMM currently carries a Zacks Rank #2 (Buy).
ITT Inc. ITT has been benefiting from strength across its industrial, aerospace and defense end-markets and strong operational execution. Solid momentum in the aftermarket business, driven by strength in energy and mining markets, is aiding the Industrial Process unit.
Growth in component sales within the aerospace and defense markets is supporting the Connect & Control Technologies unit. ITT’s innovation investments are likely to support its growth. ITT’s shareholder-friendly policies are praiseworthy.
ITT has an expected revenue and earnings growth rate of 4.9% and 11.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past 30 days. ITT currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Markel Group Inc. MKL strives to grow via acquisitions and organic initiatives to diversify its portfolio and expand its international footprint. Solid performance in the Insurance segment should drive premiums. MKL benefits from its niche focus and effective management of insurance risk.
MKL is banking on the strength of its underwriting, investment and Markel Ventures operations, which position it well for long-term growth and offer a sturdy capital position that enables it to deploy capital effectively. MKL looks to double the size of its insurance operations.
Markel Group has an expected revenue and earnings growth rate of 7.2% and 16.8%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.2% over the past 30 days. MKL currently carries a Zacks Rank #3.
Honeywell International Inc. HON has benefitted from strength in the commercial aviation, defense and space, aerospace and process solutions businesses. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line. HON’s bullish forecast for 2023 holds promise. HON’s recent acquisition of Compressor Controls enhances its expertise in industrial control, automation and process solutions.
Honeywell International has an expected revenue and earnings growth rate of 5.2% and 8.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past 30 days. HON currently carries a Zacks Rank #3.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Electric Company (GE) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
Markel Group Inc. (MKL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-08
|
GE
|
Griffon’s GFF stock has offered investors the steady growth and value they look for in the portfolio and lands the Bull of the Day after being added to the Zacks Rank #1 (Strong Buy) list on Thursday.
The multinational conglomerate and holding company has an expanding presence in the home and building products market along with the consumer and professional products markets.
After hitting 52-week highs of $50 a share this week there could still be plenty of upside for Griffon’s stock with the Average Zacks Price Target of $64.25 a share being 29% above current levels.
Image Source: Zacks Investment Research
Performance Overview
Operating through several subsidiaries including The Ames Companies, Griffon’s stock has popped +39% in 2023 and has now soared over +150% in the last three years to largely outperform the broader indexes.
As one of its most lucrative subsidiaries, The Ames Companies has operations in Massachusetts that date back to 1774 etching its name in American history while becoming a leading North American manufacturer and a global provider of branded tools and products for home storage, organization, and landscaping.
Image Source: Zacks Investment Research
Strengthening Outlook
Extending its impeccable price performance over the last few years was that Griffon was able to beat its fiscal fourth quarter earnings expectations by 22% last month.
Image Source: Zacks Investment Research
Although Griffon’s current fiscal 2024 earnings are expected to dip -7% following a tougher-to-compete-against year, FY25 EPS is projected to rebound and soar 32% to $5.56 per share. More importantly, earnings estimate revisions for both FY24 and FY25 are nicely up over the last 60 days.
Image Source: Zacks Investment Research
This is very compelling considering Griffon’s stock trades at a 12X forward earnings multiple which is a lofty discount to the S&P 500’s 21.2X and its Zacks Diversified Operations Markets' 22.9X with some of the notable names in the space including General Electric GE, 3M MMM, and Honeywell International HON.
Image Source: Zacks Investment Research
Bottom Line
In addition to sporting a Zacks Rank #1 (Strong Buy), Griffon’s stock has an “A” Zacks Style Scores grade for both Value and Growth. Checking many fundamental trading boxes there appears to be more room to run for GFF shares with Griffon offering a respectable 1.21% annual dividend yield as well.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Griffon Corporation (GFF) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-07
|
GE
|
By Scott DiSavino
Dec 7 (Reuters) - U.S. natural gas futures slid about 2% to a three-month low on Thursday on forecasts for milder weather and lower heating demand as investors worried liquefied natural gas (LNG) exports would not grow much in 2024.
On Wednesday, Exxon MobilXOM.Ndelayed expected LNG production at its 2.4-billion cubic feet per day (bcfd) Golden Pass export plant under construction in Texas to the first half of 2025 from the second half of 2024.
Traders said that delay helped sink futures prices by about 5% on Wednesday because it would reduce demand and leave more gas in the U.S., forcing producers to cut production or inject more gas into storage or both.
U.S. Energy Information Administration (EIA) data showed a massive 117 billion cubic feet (bcf) withdrawal from storage during the week ended Dec. 1, bigger than the 106-bcf decline analysts forecast in a Reuters poll and exceeding a withdrawal of 30 bcf in the same week last year and a five-year (2018-2022) average decline of 48 bcf. EIA/GASNGAS/POLL
Analysts said last week's withdrawal was bigger than usual because cold weather boosted heating demand.
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange fell 4.4 cents, or 1.7%, to $2.525 per million British thermal units (mmBtu) at 11:04 a.m. EST (1604 GMT). For the second straight day, it was on track for its lowest close since Sept. 6 and also in oversold territory with a Relative Strength Index (RSI) below 30.
With record production levels and ample storage, the gas futures market has been sending bearish signals for weeks that futures prices for this winter (November-March) had likely already peaked in November.
One of the biggest signs the market has given up on winter price spikes was the collapse of the premium of futures for March over April NGH24-J24 to a record low of just one cent per mmBtu.
March is the last month of the winter storage withdrawal season and April is the first month of the summer storage injection season. Traders have noted that gas demand peaks during the winter heating season and therefore summer prices should not trade above winter.
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states slid to 107.3 bcfd so far in December from a record 107.8 bcfd in November.
Daily output was on track to drop by 2.2 bcfd over the past four days to a preliminary one-month low of 106.0 bcfd on Thursday.
Meteorologists projected the weather would turn from warmer-than-normal from Dec. 7-10 to near-normal from Dec. 11-14 and then back to warmer-than-normal from Dec. 15-22.
With seasonally colder weather coming, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 121.5 bcfd this week to 126.4 bcfd next week. The forecast for this week was lower than LSEG's outlook on Wednesday.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.4 bcfd so far in December, up from a record 14.3 bcfd in November.
Week ended Dec 1 Actual
Week ended Nov 24 Actual
Year ago Dec 1
Five-year average
Dec 1
U.S. weekly natgas storage change (bcf):
-117
+10
-30
-48
U.S. total natgas in storage (bcf):
3,719
3,836
3,465
3,485
U.S. total storage versus 5-year average
6.7%
8.6%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.50
2.57
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
12.58
12.38
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
16.01
16.06
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
338
348
362
367
395
U.S. GFS CDDs
2
2
11
6
4
U.S. GFS TDDs
340
350
373
373
399
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
109.0
107.3
107.4
102.7
94.2
U.S. Imports from Canada8
8.6
8.7
8.8
9.1
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
117.5
116.1
116.2
111.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
2.5
3.3
3.3
3.3
3.2
U.S. Exports to Mexico
4.8
3.9
5.2
5.6
5.0
U.S. LNG Exports
14.1
14.5
14.4
11.7
8.6
U.S. Commercial
15.5
13.2
14.2
13.5
14.6
U.S. Residential
25.5
21.0
23.2
21.8
24.7
U.S. Power Plant
33.8
33.3
33.2
30.9
28.6
U.S. Industrial
25.3
24.3
24.7
24.1
25.0
U.S. Plant Fuel
5.4
5.3
5.3
5.4
5.3
U.S. Pipe Distribution
2.9
2.7
2.8
2.9
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
108.6
99.9
103.5
98.7
101.2
Total U.S. Demand
130.0
121.5
126.4
119.3
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
86
88
83
107
81
Jan-Jul
84
86
77
102
79
Oct-Sep
85
86
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Week ended Nov 10
Wind
10
10
11
9
11
Solar
3
3
3
3
4
Hydro
5
6
6
6
5
Other
2
2
2
2
2
Petroleum
Natural Gas
42
42
39
42
41
Coal
18
17
16
17
16
Nuclear
22
20
22
21
20
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.76
2.72
Transco Z6 New York NG-CG-NY-SNL
2.73
2.66
PG&E Citygate NG-CG-PGE-SNL
4.89
4.95
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
2.09
2.31
Chicago Citygate NG-CG-CH-SNL
2.33
2.50
Algonquin Citygate NG-CG-BS-SNL
9.90
13.04
SoCal Citygate NG-SCL-CGT-SNL
4.30
4.65
Waha Hub NG-WAH-WTX-SNL
1.01
2.03
AECO NG-ASH-ALB-SNL
1.56
1.56
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
102.50
117.25
PJM West EL-PK-PJMW-SNL
41.75
47.75
Ercot North EL-PK-ERTN-SNL
19.25
24.75
Mid C EL-PK-MIDC-SNL
61.00
69.60
Palo Verde EL-PK-PLVD-SNL
25.00
45.25
SP-15 EL-PK-SP15-SNL
34.50
42.00
(Reporting by Scott DiSavino; Editing by David Gregorio)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-06
|
GE
|
By Scott DiSavino
Dec 6 (Reuters) - U.S. natural gas futures fell by about 5% on Wednesday to the lowest in nearly three months, pressured by a drop in oil prices, near-record U.S. gas output and forecasts for mostly mild weather through late December that should dent heating demand.
Analysts forecast U.S. gas stockpiles were about 7.2% above normal levels for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange fell 12.9 cents, or 4.8%, to $2.581 per million British thermal units (mmBtu) at 12:04 p.m. EST (1704 GMT), on track for its lowest close since Sept. 7.
Oil prices dropped about 4% on a big rise in U.S. gasoline inventories. O/R
The futures market has been sending signals for weeks that many traders do not expect price spikes this winter (November-March) due to record production and ample amounts of gas in storage. Many in the market think futures for this heating season peaked in November.
The biggest sign the market has given up on higher prices during this winter was the collapse of the premium of March 2024 futures over April 2024 NGH24-J24 to a record low of just one cent per mmBtu.
The industry calls the March-April spread the "widow maker" because rapid price moves on changing weather forecasts have forced some speculators out of business, including the Amaranth hedge fund, which lost more than $6 billion in 2006.
Power and gas prices often soar when it turns cold in New England, wherepipeline constraints limit the amount of gas that can reach region. Most of it is used to heat homes and businesses, so power plants must switch to more expensive fuels like oil and liquefied natural gas (LNG).
In 2022, about 54% of power generated in New England came from gas-fired plants with the rest coming from nuclear (27%), hydro (7%), other (5%), wind (4%), oil (2%) and solar (1%).
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states slid to 107.5 billion cubic feet per day (bcfd) so far in December from a record 107.8 bcfd in November.
Daily output was on track to drop by 2.1 bcfd over the past three days to a preliminary four-week low of 106.2 bcfd on Wednesday. Preliminary data is often revised later in the day.
Meteorologists projected the weather would turn from warmer-than-normal Dec. 6-12 to near-normal from Dec. 13-16, then back to warmer-than-normal from Dec. 17-21.
With colder weather coming, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 121.8 bcfd this week to 126.2 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.4 bcfd so far in December, up from a record 14.3 bcfd in November.
Week ended Dec 1 Forecast
Week ended Nov 24 Actual
Year ago Dec 1
Five-year average
Dec 1
U.S. weekly natgas storage change (bcf):
-101
+10
-30
-48
U.S. total natgas in storage (bcf):
3,735
3,836
3,465
3,485
U.S. total storage versus 5-year average
7.2%
8.6%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.73
2.71
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
12.50
12.07
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
16.06
16.05
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
348
339
362
367
391
U.S. GFS CDDs
2
3
11
6
5
U.S. GFS TDDs
350
342
373
373
396
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
109.0
107.5
107.8
102.7
94.2
U.S. Imports from Canada8
8.6
8.7
9.0
9.1
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
117.5
116.2
116.8
111.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
2.5
3.2
3.2
3.3
3.2
U.S. Exports to Mexico
4.8
4.1
5.3
5.6
5.0
U.S. LNG Exports
14.1
14.4
14.3
11.7
8.6
U.S. Commercial
15.5
13.2
14.2
13.5
14.6
U.S. Residential
25.5
21.0
23.2
21.8
24.7
U.S. Power Plant
33.8
33.5
32.9
30.9
28.6
U.S. Industrial
25.3
24.3
24.7
24.1
25.0
U.S. Plant Fuel
5.4
5.3
5.3
5.4
5.3
U.S. Pipe Distribution
2.9
2.7
2.7
2.9
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
108.6
100.2
103.3
98.7
101.2
Total U.S. Demand
130.0
121.9
126.2
119.3
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
86
88
83
107
81
Jan-Jul
84
86
77
102
79
Oct-Sep
85
86
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Week ended Nov 10
Wind
11
10
11
9
11
Solar
2
3
3
3
4
Hydro
5
6
6
6
5
Other
2
2
2
2
2
Petroleum
Natural Gas
41
42
39
42
41
Coal
17
17
16
17
16
Nuclear
22
20
22
21
20
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.72
2.55
Transco Z6 New York NG-CG-NY-SNL
3.66
2.26
PG&E Citygate NG-CG-PGE-SNL
4.95
4.68
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
2.31
2.13
Chicago Citygate NG-CG-CH-SNL
2.50
2.52
Algonquin Citygate NG-CG-BS-SNL
13.04
5.79
SoCal Citygate NG-SCL-CGT-SNL
4.65
4.54
Waha Hub NG-WAH-WTX-SNL
2.03
1.77
AECO NG-ASH-ALB-SNL
1.56
1.60
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
117.25
66.50
PJM West EL-PK-PJMW-SNL
47.75
45.50
Ercot North EL-PK-ERTN-SNL
24.75
31.25
Mid C EL-PK-MIDC-SNL
69.60
68.00
Palo Verde EL-PK-PLVD-SNL
45.25
32.25
SP-15 EL-PK-SP15-SNL
42.00
45.00
(Reporting by Scott DiSavino; editing by David Evans and David Gregorio)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-06
|
GE
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $367.3 million dollar outflow -- that's a 2.5% decrease week over week (from 138,630,000 to 135,230,000). Among the largest underlying components of XLI, in trading today General Electric Co (Symbol: GE) is up about 0.7%, Honeywell International Inc (Symbol: HON) is up about 0.7%, and Caterpillar Inc. (Symbol: CAT) is higher by about 1.8%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $95.19 per share, with $111.12 as the 52 week high point — that compares with a last trade of $108.89. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
Stock Split History
Institutional Holders of BLPH
Top 10 Hedge Funds Holding Invesco
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-06
|
GE
|
By Rajesh Kumar Singh
CHICAGO, Dec 6 (Reuters) - Shortages of new planes, jet engines and pilots have left U.S. airlines with little choice but to pursue growth through acquisitions - which then puts them in the crosshairs of anti-trust regulators.
Alaska Airlines ALK.N surprised analysts and industry officials with its plan to buy Hawaiian AirlinesHA.O for $1.9 billion even before a judge rules on the U.S. Department of Justice's (DOJ) lawsuit aimed at blocking JetBlue's JBLU.O proposed merger with Spirit Airlines SAVE.N.
But supply and labor constraints are so onerous that airlines like Alaska will likely keep chasing deals despite the Biden administration's aversion to more consolidation. Currently, American Airlines AAL.O, United, Delta and Southwest Airlines LUV.N control 80% of the domestic market, leaving little room for growth.
The deal will provide Alaska - primarily a domestic carrier that flies narrowbody planes - Hawaiian's widebody jets, pilots and international networks, opening a runway for growth in long-haul international markets.
In an interview, Alaska CEO Ben Minicucci said it was the right time to do the deal, which he described as "a great investment, a great step change" for the company.
Alaska told analysts on Sunday that pursuing long-haul international flying on its own would be much more expensive and much more difficult.
Courtney Miller, a consultant who advocated for the merger between the two airlines back in 2019, said Alaska would probably have to invest around the same amount it is paying for Hawaiian to launch its own smaller international operation.
Getting into long-haul international flying by using Hawaiian's fleet of wide-body jets and international networks is a better option, he said.
With both Boeing BA.N and Airbus AIR.PA facing supply-chain problems, the deal allows Alaska to avoid a prolonged wait for new planes. It also reduces the need to hire and train pilots during an industry-wide staffing crunch and saves the company from fighting for slots at international airports.
"The risk is much lower," said Miller, who now runs consultancy firm Visual Approach Analytics.
Mergers and acquisitions create economies of scale that helps offset soaring operating costs. Alaska, however, will be challenged on this front as it integrates Hawaiian's fleet, said Schonland.
While the Seattle-based airline flies Boeing's 737 planes, Hawaiian's fleet has a number of Airbus jets, so a combined company would have to rely on different parts and mechanics for repairs. Minicucci said while the combined company will continue to operate a mixed fleet for now, he did not rule out reviewing the plane mix.
Legacy airlines like Delta DAL.N and United UAL.O have been able to mitigate inflationary pressures due to strong bookings for flights to Europe and Asia. But softening domestic travel demand has hurt earnings of domestic carriers including Alaska.
Similar growth concerns prompted JetBlue to launch a hostile bid for Spirit last year to try to expand JetBlue's domestic footprint and help it capitalize on the surge in leisure travel between the U.S. East Coast and the Caribbean.
The deals, however, face challenges in convincing anti-trust regulators that they are pro-competition and pro-consumer.
Former Federal Trade Commission Chairman William Kovacic, who now teaches at George Washington University law school, said the DOJ is likely to look at Alaska's transaction carefully.
"They approach airlines with a view that merger policy has been too permissive and allowed excessive concentration," he said.
(Reporting by Rajesh Kumar Singh, Editing by Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-06
|
GE
|
By Tim Hepher
CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand.
Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture.
"The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains.
"The supply chain was really shaken, and today it has not returned to a normal level," Andries told reporters. "So for us the question is what is the right speed for the ramp-up. It's not a question of demand ... demand is there."
Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units.
Andries reiterated a preliminary target of 2,000 LEAP engine deliveries in 2024, subject to final discussions with GE ahead of annual forecasts in February.
He indicated, however, that this represented a ceiling as pressure remained on items including raw materials.
"It is already very ambitious given the state of the supply chain today and for me to tell you today that we can do 2,100 or 2,200 in 2024 - no. So we are targeting 2,000."
'REMAIN REALISTIC'
For 2025, Andries said CFM would raise LEAP deliveries but that there was no urgency to agree precise volumes with aircraft manufacturers until around the middle of next year.
"Everyone is very conscious that in a difficult supply chain situation, we all have to be ambitious for sure, but also challenge ourselves and remain realistic," Andries said. "There is no point in making commitments you can't achieve."
Engine makers have been generally more cautious than Airbus, in particular, about raising output to meet new travel demand. Planemakers say engine supplies are among their biggest risks.
Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
But he cautioned that planemakers had recently shown a tendency to lower their demand as years progress. He also noted that Airbus had pushed back a target of 75 a month from 2025 to 2026. Airbus has said it is on track towards reaching this goal after missing targets in 2022.
In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
The comments came as Safran outlined a new framework agreement with the Moroccan government designed to develop local supply chains, with an emphasis on training. Safran repairs engines, produces engine nacelles and operates a cabling joint-venture with Boeing - Matis Aerospace - in Morocco.
(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-06
|
GE
|
By Tim Hepher
CASABLANCA, Morocco, Dec 6 (Reuters) - The head of French jet engine maker Safran SAF.PA said global supply chains are still struggling to shake off a series of external shocks and warned against setting unrealistic industrial targets as aviation tackles rising travel demand.
Together with GE GE.N, Safran co-produces LEAP jet engines for all Boeing BA.N and more than half of Airbus AIR.PA narrow-body jets through their CFM International venture.
"The supply chain is still struggling to recover from the shock of the pandemic, as well as the other shocks: Ukraine, energy, inflation and labour," Olivier Andries said during a visit to Morocco to sign a government pact on boosting supply chains.
"The supply chain was really shaken, and today it has not returned to a normal level," Andries told reporters. "So for us the question is what is the right speed for the ramp-up. It's not a question of demand ... demand is there."
Citing supply issues, CFM recently trimmed a percentage growth forecast for LEAP deliveries in 2023 to 40-45% from around 50%, implying deliveries of around 1,600 to 1,650 units.
Andries reiterated a preliminary target of 2,000 LEAP engine deliveries in 2024, subject to final discussions with GE ahead of annual forecasts in February.
He indicated, however, that this represented a ceiling as pressure remained on items including raw materials.
"It is already very ambitious given the state of the supply chain today and for me to tell you today that we can do 2,100 or 2,200 in 2024 - no. So we are targeting 2,000."
'REMAIN REALISTIC'
For 2025, Andries said CFM would raise LEAP deliveries but that there was no urgency to agree precise volumes with aircraft manufacturers until around the middle of next year.
"Everyone is very conscious that in a difficult supply chain situation, we all have to be ambitious for sure, but also challenge ourselves and remain realistic," Andries said. "There is no point in making commitments you can't achieve."
Engine makers have been generally more cautious than Airbus, in particular, about raising output to meet new travel demand. Planemakers say engine supplies are among their biggest risks.
Andries reiterated that CFM was ready to accommodate a return to output reached, or planned, prior to the pandemic: 50 twin-engined narrow-body jets a month at Boeing or 65 at Airbus.
But he cautioned that planemakers had recently shown a tendency to lower their demand as years progress. He also noted that Airbus had pushed back a target of 75 a month from 2025 to 2026. Airbus has said it is on track towards reaching this goal after missing targets in 2022.
In a further clue to CFM's output potential beyond next year, Andries said it continues to base assumptions on a market share of 60% at Airbus, where it competes with Pratt & Whitney RTX.N, and 100% at Boeing where it is sole 737 supplier.
Andries declined to give a numerical estimate for 2025, but his production and market share estimates imply deliveries of some 2,200-2,300 engines after allowing for spares output and a few dozen deliveries for the new Chinese Comac C919 jet.
The comments came as Safran outlined a new framework agreement with the Moroccan government designed to develop local supply chains, with an emphasis on training. Safran repairs engines, produces engine nacelles and operates a cabling joint-venture with Boeing - Matis Aerospace - in Morocco.
(Reporting by Tim Hepher, Editing by Louise Heavens and Mark Potter)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-05
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GE
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ITT Inc. ITT is gaining from strong momentum in the end markets like industrial, aerospace and defense. Higher sales volume and robust order growth are also driving the company’s performance.
Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.
Segmental Strength: Strength in the aftermarket business, driven by robust energy and mining markets, is aiding the Industrial Process (IP) segment. Increasing demand in the chemical and energy markets also bodes well for the segment. Growth in component sales within the aerospace and defense markets is driving the Connect and Control Technologies segment. Solid momentum in the friction original equipment business is driving growth for the Motion Technologies segment.
Acquisition Benefits: ITT has been strengthening its business through acquisitions. The company inked a deal in November 2023 to acquire the privately held Svanehøj Group A/S (Svanehøj) for approximately $395 million. The transaction is expected to close in the first quarter of 2024, subject to the completion of customary regulatory approvals. When acquired, Svanehøj will become part of ITT’s IP segment, focusing on highly engineered pumps, valves and aftermarket services.
The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, specifically for long-term defense programs. The addition of Micro-Mode grew ITT's existing North American connectors platform, which is part of its CCT segment.
Innovation Initiatives: ITT has been investing in product innovation across its friction technologies, connectors and pump businesses for a while. For instance, in June 2023, the company made an initial investment of €50 million ($54.49 million) to expand a Friction manufacturing facility in Termoli, Italy, and to enhance the research and development competence in Barge, Italy. With this investment, ITT is likely to boost its position in the brake pad market for luxury and sporting vehicles.
Business Strength: ITT is likely to benefit from its focus on fulfilling customers’ needs, operational execution, and innovation and growth investments. In the third quarter, the company’s organic orders grew 2% year over year, driven by strong demand in IP’s aftermarket business. For 2023, the company’s organic sales are expected to grow approximately 7-8% year over year. In the long run, a robust backlog in its businesses, supported by the recovery in the energy end market, is expected to boost ITT’s performance.
Rewards to Shareholders: ITT is committed to handsomely rewarding its shareholders through share buybacks and dividend payments. In the first nine months of 2023, dividend payments totaled $71.9 million and share repurchases were $60 million. The quarterly dividend rate was hiked by 10% in February 2023.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for ITT’s 2023 earnings has been revised 2% upward.
Price Performance: Shares of ITT gained 38.5% in a year against the industry‘s 6.7% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies have been discussed below.
Federal Signal Corporation FSS presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 50.2% in the past year.
General Electric Company GE presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for General Electric’s 2023 earnings has increased 53.4% in the past 60 days. Shares of GE have jumped 42.5% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 29.9% in the past year.
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General Electric Company (GE) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
Federal Signal Corporation (FSS) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-05
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GE
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By Valerie Insinna and Joanna Plucinska
LONDON/WASHINGTON, Dec 5 (Reuters) - Ukrainian aerospace group Motor Sich has little to show so far for a wartime effort to woo potential partners in the West, as it seeks new direction after it lost Russia as its biggest client and had a China tie-up blocked.
The challenges facing one of Ukraine's best-known conglomerates underline how hard it is for the country's companies to expand when there are concerns over their track record on corruption and as the conflict with Russia grinds on.
State-owned Motor Sich is Ukraine's main manufacturer of aircraft and helicopter engines, including for some of the world's largest cargo planes.
"We want to turn to the West," Chief Executive Olexiy Nikiforov told Reuters in an interview.
For almost a year, he has chased meetings with U.S. defense contractors like Lockheed Martin LMT.N and RTX RTX.N at air shows and government events.
He hopes to get another chance to make his case for greater industrial collaboration this week when U.S. and Ukrainian defense officials and industry executives gather in Washington for a summit on Wednesday and Thursday hosted by the White House.
Kyiv is stepping up its weapons production and also hopes joint ventures with international armament manufacturers can help to revive its domestic industry.
But Reuters' interviews with more than a half dozen U.S. defense executives, former U.S. officials and experts suggest many hurdles are hindering progress for Motor Sich.
U.S. businesses are open to future cooperation with Ukrainian firms, but it will take time to prove they can conduct business in a way that complies with U.S. and European regulations, they said.
Many legacy Ukrainian defense companies will trigger "red flags" during the lengthy due diligence and compliance reviews conducted by Western defense companies, said one U.S. defense executive.
Those issues are not insurmountable but can drag out the approval process for co-production agreements, he said.
Ukraine's defense industry has had trouble with efficiency and transparency, said Pavlo Verkhniatsky, director of COSA solutions, a Ukraine-based strategic intelligence firm helping Western businesses enter the Ukrainian market.
"It has baggage and a bad reputation in terms of operating its assets and the efficiency of launching projects, developing projects," he said.
Ukrainian President Volodymyr Zelenskiy has repeatedly warned that his administration would not tolerate corruption and has fired officials suspected of it.
OFF TO WASHINGTON
Sergiy Korzh, one of Motor Sich's top board members, said that any results from the summit would have little immediate impact.
"You can imagine how long it will take ... for the results of such cooperation to come to the battlefield," he told Reuters.
Still, Korzh said he had made some headway recently after a meeting with representatives of the U.S. Department of Commerce and a few major U.S. companies at the Dubai Air Show last month.
He did not give details for security reasons, as the talks related to defense.
A spokesperson for the Commerce Department's International Trade Administration said it was not a formal meeting.
A Motor Sich representative stopped by ITA's booth and spoke briefly about their company's capabilities, the spokesperson said.
ROOTING OUT CORRUPTION
Zelenskiy has made rebuilding Ukraine's defense and aerospace sector a top priority, which includes deeper investment in drone technology.
Ukraine's government also used wartime authorities to wrest control of Motor Sich away from Chinese shareholders – resolving a key concern of U.S. defense officials during the Trump administration.
The budgetary realities of the war with Russia following the 2022 invasion of Ukraine, which Moscow calls a special military operation, pose further headaches.
Motor Sich's earnings have fallen by almost 40% since Russia invaded Ukraine in February 2022, Korzh told Reuters.
Its production facilities in Zaporizhzhia have also suffered repeated missile strikes from Russian forces, putting equipment and 15,000 workers at risk, CEO Nikiforov said.
U.S. defense contractors have shown little interest publicly in partnering with aerospace companies like Motor Sich on production projects in the immediate term.
Lockheed Martin said in a statement it was "working closely" with the U.S. government to support its response in Ukraine. Lockheed Martin declined to comment when asked about a Motor Sich proposal to outfit Ukraine's Sea King helicopters with its engines.
When asked for comment about potentially working with Ukraine defense companies, Boeing BA.N said: "While we do not comment on rumors of potential discussions or transactions, we continually review our markets and portfolios to ensure we are delivering the best capabilities and value to our customers."
General Electric GE.N and RTX declined to comment. Northrop Grumman NOC.N did not respond to a request for comment.
While the talks in Washington later this week and last month's Dubai air-show contacts are potentially promising, the political realities that Western defense officials are grappling with could hinder any progress.
One U.S. defense executive said U.S. weapons makers are closely watching whether the conflict in Gaza – as well as dwindling support among U.S. Republicans for Ukraine – dampens Washington's appetite for future collaboration with Ukraine.
(Reporting by Valerie Insinna in Washington and Joanna Plucinska in London. Editing by Tim Hepher, Jo Mason and Jane Merriman)
((Joanna.Plucinska@thomsonreuters.com; 00447721669853; Reuters Messaging: @joannaplucinska;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-04
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GE
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Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-04
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GE
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Markel Group Inc.’s MKL niche focus, improved pricing, effective risk management, strategic buyouts, solid capital position and prudent capital deployment make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for Markel’s 2023 earnings is pegged at $80.27 per share, indicating a 19.8% increase from the year-ago reported figure on 10.1% higher revenues of $14.61 billion.
The consensus estimate for 2024 earnings is pegged at $93.78 per share, indicating a 16.8% increase from the year-ago reported figure on 7.1% higher revenues of $15.66 billion.
Zacks Rank & Price Performance
Markel currently carries a Zacks Rank #3 (Hold). The stock has gained 9.2% against the industry’s decrease of 7.3% in the past year.
Image Source: Zacks Investment Research
Return on Equity (ROE)
Markel’s trailing 12-month return on equity was 8.7%, up 230 basis points year over year. ROE reflects its efficiency in using its shareholders’ funds.
Style Score
Markel has a favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Markel aims to double the size of its insurance operations and thus targets $10 billion of annual insurance premiums in five years. This should lead to $1 billion of annual underwriting profit. MKL envisions to achieve this target, primarily banking on organic growth of its existing operations.
Investment income benefits from an improving rate environment. Thus, Markel’s fixed maturity portfolio is poised to gain, given higher yield rates. The company believes that the impact will become more meaningful in the future as lower-yielding securities mature and are replaced by higher-yielding securities.
Through Markel Ventures, MKL has been investing in the ownership of the best asset management firms. The company has been pursuing acquisitions to achieve profitable growth in insurance operations and to create additional value on a diversified basis in Markel Ventures operations.
Banking on a strong capital position, Markel has engaged in share buybacks.
The company has a share repurchase program, authorized by the board, that provides for the repurchase of up to $750 million of shares.
Stocks to Consider
Some better-ranked stocks from the Diversified Operations industry are General Electric Company GE, ITT Inc. ITT and 3M Company MMM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for General Electric’s 2023 and 2024 earnings indicates a year-over-year increase of 1.1% and 68.9%, respectively. GE delivered a four-quarter average earnings surprise of 53.42%.
The consensus estimate for 2023 and 2024 earnings has moved up by 15.7% and 4.7% in the past 60 days. Shares of GE have gained 44.7% in the past year.
The Zacks Consensus Estimate for ITT’s 2023 and 2024 earnings indicates a year-over-year increase of 17.1% and 11.4%, respectively. ITT delivered a four-quarter average earnings surprise of 7.99%.
The consensus estimate for 2023 and 2024 earnings has moved up by 1.9% and 1.7%, respectively, in the past 30 days. Shares of ITT have gained 33.2% in the past year.
The Zacks Consensus Estimate for 3M Company’s 2024 earnings indicates a year-over-year increase of 8.7%. MMM beat estimates in three of the last four quarters and missed in one, the average being 16.66%.
The consensus estimate for 2023 and 2024 earnings has moved up 1.9% and 1.8% in the past 60 days. Shares of MMM have lost 19.9% in the past year.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Electric Company (GE) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
Markel Group Inc. (MKL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-03
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GE
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General Electric Co. (GE) shares closed today at 1.4% below its 52 week high of $123.25, giving the company a market cap of $133B. The stock is currently up 86.2% year-to-date, up 79.8% over the past 12 months, and up 164.3% over the past five years. This week, the Dow Jones Industrial Average rose 2.6%, and the S&P 500 rose 0.8%.
Trading Activity
Trading volume this week was 9.8% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.0.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Information Technology industry sector , beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 247889.4%
The company's stock price performance over the past 12 months beats the peer average by -5576.3%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 17.3% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-01
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GE
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General Electric Company’s GE unit, GE Vernova (combined operations of GE Digital, Renewable Energy and GE Power), has secured a deal from O2 Power Private Limited to deliver, install and commission 36 units of workhorse 2.7-132 onshore wind turbines. The turbine units will be installed at a 97 MW wind power project in Maharashtra, India.
The wind power facility is planned to be commissioned in phases with full commissioning in the first half of 2025. Through this deal, many industries and commercial foundations will be able to avail renewable energy. This collaboration will also support India’s target to reach 500 gigawatt (GW) of renewable energy capacity by 2030. Including the latest one, General Electric has received 3.5 GW of orders to date for its Indian-made 2.7-132 wind turbines.
Lately, General Electric has received a series of deals, which are likely to drive its growth. In August this year, GE secured two orders from Royal Golden Eagle Group’s subsidiary East Asia Power (Yangjiang) Co., Ltd. and Beijing Energy International Holding Co., Ltd. to deliver four units of 6F.03 gas turbines.
Also, in July 2023, the company secured a deal from Hafslund Eco to supply rotor poles for Norway-based Aurland 1 hydropower plant’s 3x 280 MW / 300 MVA water-cooled generators.
Strong Segmental Performance
General Electric is benefiting from the strong performance of the Aerospace segment due to robust demand and solid execution in commercial engines and services. After months of softness, a rebound in demand in the Power segment augurs well for General Electric. Strength in GE Gas Power’s heavy-duty gas turbines is aiding the Power segment. With higher equipment demand at Grid and Onshore Wind in North America, signs of progress in the Renewables segment are encouraging.
Price Performance
In the past year, the GE stock has increased 40.2% against the industry’s 10.5% decrease.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
General Electric currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies have been discussed below.
Federal Signal Corporation FSS presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 39.5% in the past year.
ITT Inc. ITT presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have jumped 27.8% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 24.9% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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General Electric Company (GE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-30
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GE
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By Katya Golubkova and Yuka Obayashi
TOKYO, Dec 1 (Reuters) - International energy companies, from Germany's RWE to Spain's Iberdrola, are urging Japan to beef up offshore wind power auctions and make investments more attractive, amid soaring installation costs as competition for suppliers grows worldwide.
Although desperate to ease its heavy dependence on energy imports from the Middle East and Russia, Japan is coming late to offshore wind, but some industry players say it is taking a more cautious approach that puts it at a disadvantage.
"It's a global race and we can't look at it in isolation," Jens Orfelt, president for offshore wind development for Asia-Pacific at RWE Renewables RWEG.DE, told a recent conference.
The remarks came amid surging prices and fierce competition for equipment, from nacelles and towers to installation ships, with some major global projects, particularly in the United States, having recently been scrapped or facing delays.
From turbine selection to the start of operations, Japan's development process takes much longer than in Europe, said a spokesperson for Vestas VWS.CO, a top global supplier.
"The longer the project timeline, the more uncertainty and risk arise," they told Reuters, saying industry and government could work more closely to shorten such periods.
That view is echoed by global players such as Orsted ORSTED.CO and Iberdrola IBE.MC, among others.
Japan's ministry of economy, trade and industry (METI) did not reply to a request for a comment.
With less than 500 megawatt (MW) of installed offshore wind capacity now, Japan aims for projects of 10 gigawatts (GW) by 2030.
So far, it has auctioned 1.7 GW of offshore wind capacity contracts, all won by Mitsubishi-led consortiums 8058.T in 2021, and will choose winners for four more wind farms with total capacity of 1.8 GW by the end of March.
A third round, yet to be announced, is expected to offer 1.05 GW more in two projects, METI says.
But foreign players involved in some of the world's biggest offshore farms consider that scale and speed to be too modest, adding that bigger auctions allow better planning of supply chains and cost control.
"We would say continue with the auctions but consider 1 GW per project instead of 1 GW per auction," Orfelt added.
In this area, Japan is well behind Taiwan, which is offering 3 GW in its auctions, and South Korea, which is expanding in floating wind, a technology yet to be commercially launched in Japan.
"If you want to create appetite from investors you need to propose larger plants," Begona Diaz, Asia-Pacific area manager for offshore wind at Spain's Iberdrola Renewables IBE.MC, told the conference.
"You are not able to generate scale economies from just 300 MW, you need to go for huge plants."
Japan needs about $18 billion to develop offshore wind farms by 2030, including already invested funds, and $250 billion by 2050, which includes hard-to-predict floating offshore wind costs, said Chris Wilkinson, a senior analyst at Rystad Energy.
Orsted's country manager for Japan, Henriette Holm, called on Japan to tender "10 GW to 15 GW in one go".
MYSTERY BIDDERS
In the wake of the emissions-fighting U.S. Inflation Reduction Act (IRA), Japan adopted a law in March to promote green investment by selling government debt of about 20 trillion yen ($136 billion) to lure private capital of 150 trillion yen over the next decade.
Japan's auction rules bar companies from commenting on the second-round process or saying whether they are bidding.
But Japanese government documents show Germany's RWE, in consortiums with Japanese companies, was making environment assessments - an indication of a bid - for two areas in the second round in the regions of Akita and Niigata.
Other foreign companies making such assessments included Singapore's Vena Energy, SSE Pacifico co-owned by UK-listed energy group SSE SSE.L and Canada's Northland Power NPI.TO.
RWE and SSE Pacifico declined to comment. Vena Energy and Northland Power did not reply to Reuters requests for comment.
BP BP.L is seeking partners for offshore wind projects in Japan, a market it has identified for growth, an executive told Reuters in November. The company did not reply to request for a comment.
Norway's Equinor EQNR.OL did not bid in the second round but is "positioning together with local partners for upcoming licensing rounds", spokesperson Magnus Frantzen Eidsvold said.
SUPPLY CHAIN
METI is pushing for domestic suppliers to make up at least 60% of offshore wind projects by 2040, to help Japan grow its expertise, and foreign players will probably have to join forces with Japanese companies to win jobs and localise production.
GE Renewable Energy GE.N has teamed with Toshiba Energy Systems & Solutions 6502.T to make GE's Haliade-X offshore wind turbines near Tokyo.
Toshiba Energy Systems plans to build a domestic supply chain for offshore wind turbines and will start nacelle production from 2026, to gradually phase out foreign parts, said Yuji Shimada, an official at Toshiba Energy Systems & Solutions.
Vestas, which produces nacelles and blades in India and China, is pushing for a strong regional supply chain, rather than factories in individual countries, its spokesperson said.
"We think establishing a supply chain in one country for one country will only lead to increased costs and increased risks," the spokesperson added.
($1=147.0900 yen)
How will Japan reach its ambitious goal in offshore wind energy? ID:nL8N3CU3PV
(Reporting by Katya Golubkova and Yuka Obayashi in Tokyo, Christoph Steitz in Frankfurt, Nerijus Adomaitis in Oslo, Ron Bousso in London and Benjamit Mallet in Paris; Editing by Tony Munroe and Clarence Fernandez)
((ekaterina.golubkova@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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GE
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By Tim Hepher
PARIS, Nov 29 (Reuters) - The head of Dubai's Emirates has urged Rolls-Royce RR.L to go "back to basics" and focus on the performance of its engines, a day after the British firm laid out plans to quadruple profits.
Shares in the engine maker rose after CEO Tufan Erginbilgic unveiled a strategy on Tuesday to revive its fortunes including a sharp increase in profit margins and "value-driven pricing," suggesting higher servicing bills.
But Emirates Airline President Tim Clark, who criticised Rolls over pricing and the performance of its largest engine at this month's Dubai Airshow, appeared unswayed by the plans which rely on sharply increasing civil engine profit margins to 15-17%.
"If you have an engine ... not performing as it should do, your costs are going to rise. But your ability to extract value from the client is going to fall simply because the client won't accept non-performance," he told Reuters, referring to the costs borne by engine makers due to service contracts per flight hour.
"It's a very clear kindergarten understanding of cause and effect. Get your product right, design it to what the client wants, give it that high level of reliability. And yes, paradoxically, you can extract more value for your money for your buck in terms of your investment."
At this month's air show, Clark ruled out an immediate deal to buy Airbus A350-1000 jets, the larger of two models, blaming a dispute with Rolls over the poorer-than-expected durability of its engines, coupled with pressure for higher servicing prices.
"I said, guys, you need to go back to basics. Design engines that meet what the client base wants," Clark recalled saying to the engine maker during negotiations, which ultimately gave way to a top-up order for the smaller A350-900.
"We were ready on the -1000. You have no idea how much work I've spent on the interiors of these airplanes," Clark said, adding the engine stand-off had "opened the door" to reviving the Boeing 777-8 as a passenger variant as well as a freighter.
Rolls-Royce had no further comment beyond Tuesday's investor presentation. Airbus declined to comment.
Rolls has acknowledged that the downtime on the XWB-97 engine is greater than expected but has denied suggestions by Clark that the performance level equates to being "defective".
Clark said the idea of ordering the A350-1000 was "not off the table" but added it depended on progress on downtime, noting that Rolls plans to introduce some modifications inherited from its Ultrafan engine technology research in late 2025 or 2026.
"I would say get your engines right .... I promise you: you come up with a good engine, and we will talk to you seriously about a sort of maintenance cost, which gives you the kind of returns that you seek without being over-greedy."
TUG OF WAR
Erginbilgic said on Tuesday the problem of durability was specific to the XWB-97 engine used on the A350-1000 and only in challenging climates. He said Rolls was working with Airbus "to improve that engine to a great level".
The dispute between Emirates and Rolls has brought to light a tug of war between fuel efficiency and "time on wing" or durability of engines, which often have to be traded off against each other on the drawing board, especially for hot climates.
Engine makers want to be rewarded more for their investments in cutting-edge technology given the value of the fuel savings and lower emissions they offer airlines on every mile of flight.
Airlines say they bear the brunt of the disruption and reputational damage when aircraft face unplanned repairs, and have to do so on far narrower profit margins.
"When I see people talking about rates of return ... of 10% or 15%, and we're struggling as an airline industry generally in the realm of 3% or 4% - it's a partnership," Clark said.
He brushed aside the idea of renegotiating existing engine contracts to raise hourly pricing, saying "don't go there".
Clark, who is seen as one of the airline industry's most influential leaders and who runs the largest wide-body fleet, described Rolls as the "gold standard" in engineering but added they and others had been "coming at it the wrong way".
The Emirates boss has also sharply criticised quality problems at Boeing. Broader industrial or supply problems have lingered since the pandemic, while some in the industry including Raytheon Technologies are returning cash to investors.
Clark's message to the wider industry was straightforward.
"You're all fixated on buybacks, rates of return ... I promise you, build us the airplanes that we want and all this will fall into place".
(Reporting by Tim Hepher; Editing by Sharon Singleton and Mark Potter)
((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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GE
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Below is Validea's guru fundamental report for GENERAL ELECTRIC CO (GE). Of the 22 guru strategies we follow, GE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
GENERAL ELECTRIC CO (GE) is a large-cap value stock in the Aerospace & Defense industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of GENERAL ELECTRIC CO
GE Guru Analysis
GE Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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