You may have missed these old industrial stocks as they quietly rose to new highs and broke out of bases recently. But now these two conglomerates founded in the 19th Century — General Electric (GE) and Siemens (SIEGY) — are reinventing themselves and the stock prices of each are on the move.
GE Stock Hit New High
General Electric has rallied since it sold its GE Healthcare Technologies (GEHC) business and is improving its bottom line. GE also is on track to spin off its power and renewable energy unit in the second quarter of 2024.
On Oct. 24, the company reported better-than-expected third-quarter earnings and sales. It also raised its full-year 2023 profit outlook.
In that report, GE said quarterly earnings grew to 82 cents a share from a loss of 17 cents in the prior year’s quarter, on 20% sales growth. Also, GE stock analysts expect 99% profit growth in 2023 and 72% in 2024. GE makes aircraft engines, gas and steam turbines, power systems and appliances.
Siemens Breaks Out Of Cup Base
Shares rallied following the company’s fiscal fourth-quarter earnings report on Nov. 16. Siemens stock gapped up 6.1% after the company’s 12% sales growth beat revenue forecasts, as did orders expectations. It also offered a full-year earnings outlook that was higher than expected.
Though earnings dropped 31% from a robust year-ago quarter, the company highlighted its best-ever margins for its industrial businesses.
Like GE stock, Siemens is one of the industrial stocks in IBD’s Diversified Operations group. It specializes in industrial automation and software used by industries ranging from aerospace to energy and on to financial operations.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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