CAN SLIM Analysis: GENERAL ELECTRIC (NYSE:GE) Shows Strong Growth and Momentum

The CAN SLIM investment strategy, created by William O'Neil, joins fundamental and technical analysis to find high-growth stocks with solid momentum potential. This methodical process assesses companies using seven main factors represented by the acronym CAN SLIM, concentrating on earnings growth, institutional sponsorship, and market leadership. Investors applying this method look for stocks showing increasing quarterly earnings, solid annual growth, new products or services, and technical strength compared to the wider market.

Recent Performance and Growth Metrics

GENERAL ELECTRIC (NYSE:GE) shows notable growth features that match several CAN SLIM factors. The company's latest quarterly performance displays marked increases in both earnings and revenue, which meets the system's focus on present quarterly growth.

• Quarterly EPS growth of 44.3% year-over-year
• Quarterly revenue growth of 26.4% year-over-year
• Three-year EPS compound annual growth rate of 28.2%
• Return on equity of 40.5%

These numbers greatly exceed the CAN SLIM minimums, which usually ask for quarterly EPS growth of 20-25% and yearly earnings rises of 25-50%. The solid ROE of 40.5% is much higher than the 10% minimum, showing good use of shareholder capital. This good profitability base supports the "C" and "A" parts of the CAN SLIM system, concentrating on current and yearly earnings increases.

Valuation and Financial Health

While GE's valuation numbers seem high with a P/E ratio over 50, the company's outstanding growth rates and getting better margins give reason for this higher price. The fundamental analysis report points to very good profitability scores, especially in margin performance, where GE does better than most industry competitors.

The company keeps a sensible debt-to-equity ratio of 0.89, fitting the CAN SLIM liking for ratios under 2. This careful leverage method supports financial steadiness while allowing for planned growth projects. Institutional ownership is about 80.6%, under the 85% level that could show limited buying possibility from large investors.

Technical Strength and Market Position

GE's technical profile displays several features liked by CAN SLIM users. The stock shows solid relative strength, doing better than 90% of all stocks in the market and 73% of aerospace and defense industry competitors. This leading position meets the "L" part of the system, which stresses investing in market front-runners instead of weaker performers.

The technical analysis report notes both short-term and long-term trends stay positive, with the stock lately trading near 52-week highs. This price activity fits the "N" factor focusing on new highs coming from correct chart bases. The existence of multiple support levels below current prices gives possible risk management reference points for position sizing.

Industry Context and Institutional Support

As a known participant in the aerospace and defense sector, GE gains from its market leadership in aircraft engines and propulsion technologies. The company's installed base of about 45,000 commercial and 25,000 military aircraft engines makes a large repeating revenue stream from maintenance and service contracts. This business model steadiness adds to the growth-focused CAN SLIM method.

Institutional sponsorship stays large but below full levels, indicating possibility for more institutional buying. The mix of good fundamentals, technical momentum, and acceptable institutional ownership forms a profile that might interest growth-focused investors using the CAN SLIM methodology.

Complete Analysis Resources

For full fundamental analysis, readers can check the complete GE fundamental report. The technical analysis report gives more details on price patterns, support and resistance levels, and momentum indicators.

Investors wanting to find other companies that fit CAN SLIM factors can use the predefined screener setup used to find possible candidates. This screening process methodically uses the CAN SLIM factors to discover companies displaying good growth, technical momentum, and institutional interest.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results.