GE Stock Can Fly Higher, Powered by Jet Engines

Shares of General Electric (NYSE: GE) have plummeted by more than 40% this year, as the industrial conglomerate has slashed its earnings guidance and cut its dividend in half. Plenty of ink has been spilled regarding various management mistakes at GE, particularly the company's ill-timed bets on the power and energy industries.

From a high-level perspective, this criticism is well deserved. Furthermore, the downturn in the key power segment does justify a significantly lower GE stock price. That said, while some of GE's business segments face severe challenges, others are quite healthy. For example, the healthcare business is posting steady mid-single-digit revenue growth while gradually expanding its profit margin.

However, General Electric's real gem is its aviation segment. Rising sales of jet engines -- and growth in related engine services work -- could drive big gains for long-term investors in GE stock.

Source: Fool.com