That’s not to say that the company is neglecting traditional energy. With $15 billion in annual revenue, GE’s oil and gas segment is just under half as large as fracking pioneer Halliburton Company (NYSE:HAL) and only $5 billion behind third-place Baker Hughes Incorporated (NYSE:BHI) . Both of those companies are about a century old , so to be approaching competitive scale with them so quickly is impressive — and a bit worrying for shareholders in the old guard, I would imagine. GE’s already signing big deals left and right, including a half-billion dollar contract with Brazil’s Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) to supply offshore drilling equipment and services at four facilities.
GE’s also got its hand in some interesting next-gen technology, particularly the industrial Internet, which could be the connecting backbone that ties all of GE’s disparate manufacturing and services segments together. Data analytics is still a young industry, and the opportunities for optimization are immense. Whether it occurs on the factory floor, in the air (on the wing of one of The Boeing Company (NYSE:BA)‘s 787s… whenever all those little problems, like spontaneous fires, happen to be fixed), in the field, or in the lab, the application of smart data to industrial processes is bound to improve GE’s performance.
Boeing could become a thorn in GE’s side as its 787 Dreamliner program suffers from more delays and more worrisome defects. That could undermine GE’s purchase of Avio, the Italian aeronautics company that was supplying components for the GE engine installed on many 787s. A drag on the aviation segment, coupled with the ongoing drawdown in GE Capital and a potential hiccup in wind orders thanks to congressional foot-dragging on the tax credit, could create the zero-growth environment CEO Jeffrey Immelt warned of late last year.
Putting the pieces together
Today, GE has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.
The article Is General Electric Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights.The Motley Fool recommends Halliburton and Petroleo Brasileiro (NYSE:PBR) S.A. (ADR). The Motley Fool owns shares of General Electric.
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