General Electric Company (GE)’s Focus on Industrials Expected to Boost Organic Growth

General Electric Company (NYSE:GE) has in the recent past been doing away with its financial business as it looks to position itself, more of a giant industrial company than it has been over the past 25 years. The company has over the years wanted to be valued as an industrial conglomerate than a company weighed down by a big consumer finance unit. General electric’s 5% organic growth in the industrial segment according to CNBC’s, Jim Crammer, is better than what other players in the same space have registered

Best Financial Services Companies to Work For

General Electric Company (NYSE:GE)’s 5% organic growth in the industrial segment, according to CNBC’s, Jim Cramer, is better than what other players in the same space have registered. The main challenge, according to Cramer is the fact that its growth has not trickled down to its bottom line. Cramer remains optimistic on General Electric reaching the $40 mark if it can get everything right in the industrial segment, towards which it has shifted its focus.

“[…] They did have a 5% organic growth, which is better than almost every single industrial I follow, it’s just that it was not falling to the bottom line. If they can get it to fall to the bottom line the stock goes to $30; this is $24 on the downside, $30 on the upside, if they get it right,” said Mr. Cramer.

Bernstein’s target for General Electric Company (NYSE:GE) at the moment stands at $33, the analyst changing its rating to ‘Buy’ as Cramer pointed out. The analyst maintained that Alstom risks are manageable and with industrial exposure taking a good shape, all is in the company going forward. Europe, on the other hand, according to Cramer could pose the greatest challenge for General Electric taking into consideration the fact that many companies are fleeing the industrial segment.

Cramer expects General Electric Company (NYSE:GE) to surge to a high of between $29 and $33 if a sustainable solution is found in Europe especially on the standoff between Russia and Ukraine.

“Europe is bad again, people are fleeing from the industrials. General Electric Company (NYSE:GE) has been a little bit stale every time they do something, seems like something else goes away.  But I do think if you feel that Europe is going to turn, if you feel  that Russia is going to ask for this demilitarized zone, [...] then you are going to get to $29-$30,” said Cramer.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!