Why GE Stock Is Rallying Today

Plane engine maker GE Aerospace (GE) is advancing 10% in early trading after the company reported stronger-than-expected fourth-quarter results today. Moreover, GE’s orders soared last quarter, showing that the demand for its products strengthened in Q4.

A Look at GE’s Q4 Results and Its Guidance

GE’s earnings per share came in at $1.75, way above analysts’ average estimate of $1.10. On the top line, it generated revenue of $10.8 billion, compared with the mean outlook of $10 billion.

A row of commercial airplanes on a runway, their engines running and ready for takeoff.

And very impressively, the firm’s orders soared 46% versus the same period a year earlier, while the revenue of its commercial unit jumped 19% year-over-year.

On the guidance front, GE expects its 2025 adjusted EPS to come in at $5.10 to $5.45, versus $4.60 in 2024. The midpoint of the firm’s guidance range is $5.275, slightly above analysts’ average estimate of $5.23. The company predicts that its top line will increase by low-double-digit percentage levels after its sales climbed 10% in 2024.

“GE Aerospace delivered a strong finish to 2024 given robust demand for our services and products with fourth quarter orders up 46%, EPS more than doubling, and free cash flow increasing over 20%,” CEO O H. Lawrence Culp, Jr said in a statement.

The Recent Price Action of GE Stock

In the last month, the shares have jumped 20%, while they are up 15% in the last three months.

While we acknowledge the potential of GE, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.