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GE Aerospace (GE): 3 Reasons We Love This Stock

GE Cover Image

GE Aerospace currently trades at $327.27 and has been a dream stock for shareholders. It’s returned 251% since January 2021, tripling the S&P 500’s 83.7% gain. The company has also beaten the index over the past six months as its stock price is up 24.7% thanks to its solid quarterly results.

Is now still a good time to buy GE? Or are investors being too optimistic? Find out in our full research report, it’s free.

Why Are We Positive On GE?

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, GE Aerospace grew its sales at an impressive 11.8% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.

GE Aerospace Quarterly Revenue

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

GE Aerospace’s EPS grew at an astounding 34.7% compounded annual growth rate over the last five years, higher than its 11.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

GE Aerospace Trailing 12-Month EPS (Non-GAAP)

3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

GE Aerospace has shown terrific cash profitability, putting it in an advantageous position to invest in new products, return capital to investors, and consolidate the market during industry downturns. The company’s free cash flow margin was among the best in the industrials sector, averaging 17.6% over the last five years.

GE Aerospace Trailing 12-Month Free Cash Flow Margin

Final Judgment

These are just a few reasons why we think GE Aerospace is a high-quality business, and with its shares outperforming the market lately, the stock trades at 47.7× forward P/E (or $327.27 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than GE Aerospace

Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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