My Top Blue-Chip Industrial Stock to Buy in September
General Electric (NYSE: GE) represents an excellent value despite the near-term risk to its earnings outlook. Furthermore, its value is likely to be released in early January when GE HealthCare is spun off. GE may not be the most attractive company, but it is an attractive stock. Here's why.
Investing in a stock isn't a beauty contest or just a vote on which company you think has the best chance of beating earnings estimates in the next three months. If it were, the case for buying GE would be weak. But, frankly speaking, there's downside risk to its earnings in the coming quarters.
While management maintained its full-year guidance on the last earnings call, the reality is that its guidance ranges are wide enough to drive a bus through. Revenue is expected to grow between low- to mid-single digits, and earnings per share look to be in the $2.80 to $3.50 range. Moreover, management walked back the free cash flow (FCF) guidance of $5.5 billion to $6.5 billion by telling investors there would be a push out of $1 billion in FCF from 2022.
Source Fool.com
