For much of the past five years, General Electric (NYSE: GE) has been a compelling value stock. While downturns in its energy-related businesses, insurance losses, and the COVID-19 pandemic combined to pressure its earnings and cash flow, GE stock traded at a very low valuation, relative to its long-term earnings power.

That situation has changed dramatically over the past year. A string of strong earnings results and the spinoff of its healthcare unit have helped GE stock deliver a total return of 140% in just 10 months. At its current price, the company can no longer fairly be called a value stock.

On Tuesday, GE released yet another excellent earnings report as it continues to bounce back from the pandemic. On an organic basis, revenue jumped 19% to $15.9 billion in the second quarter, while adjusted earnings per share (EPS) nearly doubled to $0.68, compared to $0.36 a year earlier.

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Source Fool.com