Key Stats for General Electric Stock
- Past-6-Month Performance: 27%
- 52-Week Range: $159 to $344
- Valuation Model Target Price: $431
- Implied Upside: 26%
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What Happened?
GE Aerospace stock is up about 27% over the past six months, recently trading near $339 per share after reaching a 52-week high of $344. The rally has been fueled by strong earnings results, rising commercial services demand, and upgraded 2026 profit and cash flow guidance.
Shares moved higher this week specifically after GE reported fourth quarter orders up 74% and revenue up 20%, with EPS rising 19% to $1.57 and free cash flow increasing 15%, reinforcing momentum across both equipment and high-margin services.
For the full year, orders climbed 32%, revenue rose 21%, operating profit reached $9.1 billion, and backlog expanded to roughly $190 billion, up nearly $20 billion year over year.
Management guided 2026 revenue growth in the low double digits, operating profit of $9.85 billion to $10.25 billion, EPS of $7.10 to $7.40, and free cash flow of $8.0 billion to $8.4 billion, with CEO Larry Culp stating, “2025 was an outstanding year for GE Aerospace.”
Analyst sentiment has remained constructive. Morgan Stanley initiated coverage with a $425 price target, highlighting durable aftermarket revenue, pricing power in spare parts, and operating leverage as shop visit volumes expand.
Consensus price targets cluster in the low $360s, reflecting continued confidence in earnings durability and backlog conversion.
Institutional positioning reinforces the strength in ownership. Skandinaviska Enskilda Banken AB publ opened a new 200,000 share position valued at about $60.16 million, NEOS Investment Management increased its stake by 36.8% to 140,819 shares worth $42.36 million, and Tredje AP fonden initiated a new 30,045 share position valued at $9.04 million.
At the same time, Ontario Teachers Pension Plan reduced its stake by 18.8% to 353,284 shares worth $106.3 million and Factory Mutual Insurance trimmed its holdings by 16.4%.
Overall institutional ownership stands at roughly 74.77%, showing broad participation despite selective profit-taking near record highs.
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Is General Electric Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 11%
- Operating Margins: 22%
- Exit P/E Multiple: 39x
Revenue is projected to grow from roughly $35 billion in 2024 to about $67 billion by 2030, supported by accelerating LEAP engine deliveries and sustained commercial flight hours that drive aftermarket demand.
Growth is increasingly tied to high-margin services, which improves earnings quality compared to original equipment sales.
Margin expansion remains the key driver. LTM EBIT margins are around 21%, and further gains depend on higher spare parts pricing, expanding LEAP shop visit volumes, and supply chain improvements that lift output efficiency.
Services revenue grew 26% in 2025, and LEAP internal shop visits rose 27%, demonstrating the operating leverage embedded in the installed base of roughly 80,000 engines.
Free cash flow conversion is equally important. GE generated $7.7 billion of free cash flow in 2025 with conversion above 110%, and management expects $8.0 billion to $8.4 billion in 2026.
With backlog at $190 billion and services growth expected in the mid-teens, sustained cash generation will be central to justifying the current valuation.
Based on these inputs, the model estimates a target price of $431, implying about 26% total upside over the next several years.
At roughly $339 per share and about 42x trailing earnings, GE Aerospace appears modestly overvalued today, with 2026 performance likely driven by sustained margin expansion, LEAP profitability improvement, and strong free cash flow conversion rather than further multiple expansion.
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