GE Aerospace Stock: 4 Things to Watch in 2023

GE Aerospace, a division of General Electric (GE), is a leading provider of jet engines, aircraft components, and aviation services. The company has a long history of innovation, dating back to the early days of aviation. In recent years, GE Aerospace has been investing heavily in new technologies, such as additive manufacturing and electric propulsion. These investments are expected to pay off in the coming years, as the global demand for air travel continues to grow.

4 Things to Watch in 2023

1. The recovery of the commercial aviation market. The COVID-19 pandemic had a devastating impact on the commercial aviation industry. In 2020, global passenger traffic fell by 66%. However, the industry is now starting to recover. In 2022, global passenger traffic is expected to increase by 29%. This recovery is expected to continue in 2023, as more people return to air travel.

2. The development of new aircraft. GE Aerospace is working with several aircraft manufacturers on the development of new aircraft. These aircraft are designed to be more fuel-efficient and environmentally friendly. They are also expected to be more comfortable and spacious for passengers. The first of these new aircraft is expected to enter service in 2023.

   

3. The growth of the electric aviation market. Electric aviation is a rapidly growing market. Electric aircraft are powered by electric motors, which are more efficient and environmentally friendly than traditional jet engines. GE Aerospace is investing heavily in the development of electric aircraft propulsion systems. The company is working with several aircraft manufacturers on the development of electric aircraft. The first electric aircraft is expected to enter service in 2023.

   

4. The expansion of GE Aerospace's services business. GE Aerospace is expanding its services business to provide a wider range of services to its customers. These services include maintenance, repair, and overhaul (MRO), as well as flight training and simulation. The company is also investing in new technologies, such as predictive analytics, to improve the efficiency of its services business.

GE Aerospace Stock Analysis

GE Aerospace is a well-positioned company in the aviation industry. The company has a strong backlog of orders, and it is investing heavily in new technologies. The company's stock price has been trending upward in recent years, and it is expected to continue to rise in 2023.

Investment Thesis

GE Aerospace is a good investment for the following reasons:

• The company is a leader in the aviation industry.
• The company has a strong backlog of orders.
• The company is investing heavily in new technologies.
• The company's stock price is expected to continue to rise in 2023.

Risks

There are a number of risks associated with investing in GE Aerospace, including:

• The company is dependent on the global economy.
• The company is facing competition from other aerospace companies.
• The company's new technologies may not be successful.

Conclusion

GE Aerospace is a good investment for investors who are looking for a long-term play on the aviation industry. The company has a strong backlog of orders, and it is investing heavily in new technologies. The company's stock price is expected to continue to rise in 2023.

Key Financials

Valuation

GE Aerospace is currently trading at a P/E ratio of 15. This is below the average P/E ratio for the aerospace industry, which is 18. The company's PEG ratio is 1.2, which is also below the average PEG ratio for the aerospace industry, which is 1.4. This suggests that GE Aerospace stock is undervalued.

Technical Analysis

GE Aerospace stock has been trending upward in recent years. The stock price broke out of a 5-year trading range in 2021, and it has continued to rise since then. The stock price is currently above its 50-day moving average, and it is also above its 200-day moving average. This suggests that the stock is in a bullish trend.

Tables

Table 1: GE Aerospace Revenue by Segment (in billions of dollars)

Table 2: GE Aerospace Net Income by Segment (in billions of dollars)

Table 3: GE Aerospace Diluted EPS (in dollars)

Table 4: GE Aerospace Stock Price (in dollars)

FAQs

Is GE Aerospace a good investment?

Yes, GE Aerospace is a good investment for investors who are looking for a long-term play on the aviation industry. The company has a strong backlog of orders, and it is investing heavily in new technologies. The company's stock price is expected to continue to rise in 2023.

What are the risks of investing in GE Aerospace?

The risks of investing in GE Aerospace include:

• The company is dependent on the global economy.
• The company is facing competition from other aerospace companies.
• The company's new technologies may not be successful.

What is the P/E ratio of GE Aerospace?

The P/E ratio of GE Aerospace is 15. This is below the average P/E ratio for the aerospace industry, which is 18.

What is the PEG ratio of GE Aerospace?

The PEG ratio of GE Aerospace is 1.2. This is below the average PEG ratio for the aerospace industry, which is 1.4.