Will General Electric Company (GE) Help You Retire Rich?

General Electric has made investors happy by de-emphasizing its GE Capital division, which led the company’s growth charge during the boom of the mid-2000s but almost caused its demise in the financial crisis. Instead, GE has focused on a number of industrial initiatives, with particular focus in energy, aviation, and technological infrastructure.

GE hasn’t hesitated to pull the trigger on some big acquisitions lately. Its $4.3 billion purchase of Italian aerospace supplier Avio should help GE meet its commitments to The Boeing Company (NYSE:BA) and other aircraft-makers. Recent problems with the new 787 Dreamliner are making GE investors nervous, but barring a wholesale collapse of the program, GE should have a secure future with Boeing. Avio will also help GE compete better against Emerson Electric Co. (NYSE:EMR) , which has focused on energy-management technology to make businesses more efficient.

Energy remains a key segment for GE: Its wind turbine business is an important part of its renewable-energy initiative. Yet GE has also built up a big presence in the conventional-energy business, having made small acquisitions to triple its size. Meanwhile, with plans to enter the mining-equipment industry, GE sees another opportunity to build a new business essentially from scratch.

The big recent news that vaulted the stock came when partner Comcast Corporation (NASDAQ:CMCSA) agreed to buy out GE’s 49% stake in NBC Universal for $16.7 billion. The move further pushes GE back toward its industrial roots by removing the vestiges of its successful foray into the media business.

For retirees and other conservative investors, GE’s numbers paint a backward-looking picture of economic hardship. But if you think the company has turned the corner, then GE’s score stands to rise substantially in the coming years, and buying in now — even at a heightened earnings multiple — may be a smarter move than a three-point total would suggest.

The article Will General Electric Help You Retire Rich? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Emerson Electric. The Motley Fool owns shares of General Electric.

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