GENERAL ELECTRIC (NYSE:GE) – A Strong Contender for CANSLIM Investors

GENERAL ELECTRIC (NYSE:GE) stands out as a potential candidate for investors following the CANSLIM strategy, which emphasizes strong earnings growth, relative strength, and institutional support. The company meets several key criteria of the system, supported by both fundamental and technical factors.

Why GE Fits the CANSLIM Criteria

• Earnings Growth (C & A Criteria): GE reported a 62.6% year-over-year EPS growth in its latest quarter, well above the CANSLIM minimum threshold of 20%. Revenue growth was also strong at 34%. Over the past three years, EPS has grown at an annualized rate of 28.2%, indicating sustained profitability.
• Return on Equity (A Criteria): With an ROE of 36.3%, GE demonstrates efficient use of shareholder capital, far exceeding the 10% minimum suggested by the strategy.
• Relative Strength (L Criteria): GE’s relative strength score of 92.2 places it in the top 8% of all stocks, a key trait for market leaders.
• Institutional Sponsorship (I Criteria): Institutional ownership stands at 80%, within the preferred range—high enough to indicate confidence but not so high that buying pressure could diminish.
• Debt Management (S Criteria): The company maintains a debt-to-equity ratio of 0.91, below the CANSLIM-recommended maximum of 2, reflecting a balanced capital structure.

Technical Strength

GE’s stock is in a strong uptrend, with both short-term and long-term trends positive. It is trading near its 52-week high, reinforcing its momentum-driven appeal. The stock has outperformed 92% of the market over the past year, further validating its leadership status.

For a deeper look, review the full technical analysis report and fundamental analysis report.

Our CANSLIM High Growth screener provides more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.