GE Aerospace (GE): A Bull Case Theory

We came across a bullish thesis on GE Aerospace on Stock Analysis Compilation’s Substack. . In this article, we will summarize the bulls’ thesis on GE. GE Aerospace’s share was trading at $244.75 as of July 2^nd. GE’s trailing and forward P/E were 38.60 and 43.86 respectively according to Yahoo Finance.

General Aerospace (GE) is strategically positioned for sustained, highly profitable growth, driven primarily by its aerospace segment, with a particular focus on commercial aircraft engines. This segment is the company’s core profit engine, contributing nearly three-quarters of total sales and an even larger share of earnings.

GE maintains a dominant position in the narrowbody engine market through its CFM International joint venture with Safran, and it controls approximately half of the widebody engine market independently. The aircraft engine industry is defined by formidable barriers to entry, significant switching costs, and a highly profitable aftermarket business, as airlines rely on GE for long-term servicing and parts replacement.

These dynamics create a recurring revenue stream with strong pricing power. GE’s unparalleled position in both original equipment manufacturing and aftermarket services gives the company long-term earnings visibility and an ability to sustain double-digit growth rates. The aftermarket component is particularly lucrative, driven by the installed base of engines that require ongoing maintenance and upgrades over their 20+ year life cycles.

Despite a recent pullback in the stock, this has presented an attractive opportunity to invest in a business with durable growth characteristics and exceptional earnings visibility at a reasonable valuation of just under 30x earnings. With industry demand supported by rising global air travel and increasing aircraft utilization, GE’s aerospace segment is poised to deliver strong, long-term shareholder value. Investors see the potential for compounding returns driven by robust margins, recurring cash flows, and continued market leadership in the commercial aviation space.

Previously we covered a bullish thesis on GE Aerospace by Asymmetric Ventures in May 2025, which highlighted the company’s leadership in aftermarket MRO services and strong customer retention through Power-by-the-Hour contracts. The company’s stock price has appreciated approximately by 1.2% since our coverage. The thesis still stands as aftermarket strength remains intact. Stock Analysis Compilation shares a similar perspective but emphasizes engine market dominance.

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Disclosure: None. This article was originally published at Insider Monkey.