GE - Moat Monster: GE Aerospace's Rally Is Just The Beginning

2024-06-06 14:20:50 ET

Summary

• General Electric (now known as GE Aerospace) has a strong moat, driven by extensive R&D, partnerships, and dominance in commercial and defense sectors.
• The company has shown impressive financial performance with double-digit growth in orders, revenue, and free cash flow.
• Despite its current valuation, GE has favorable growth potential and a fair stock price target of 33% above the current price.

Introduction

I have to say I do not have many regrets when I think of investments I made in the past few years. I still own most of the companies I bought for my dividend growth portfolio since the pandemic, and I did not sell anything at a loss. While that may sound a bit cocky, note that I have a multi-decade investment horizon when I place an investment. My turnover is extremely low.

That said, my biggest regrets are stocks I did not buy - especially stocks that I gave a (Strong) Buy rating in the past. One of these companies is General Electric Company, which is now named GE Aerospace ( GE ) after spinning off all non-aerospace segments....

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