Why General Electric Stock Soared 37% in November

Shares in General Electric (NYSE: GE) soared 37.2% in November according to data provided by S&P Global Market Intelligence. There are two main reasons for the dramatic move.

First, the stock built upon the positive set of third-quarter earnings released at the end of October. The key takeaways from the earnings report are that GE's full-year free cash flow (FCF) performance would be better than most had feared earlier in the year. In addition, there was hard evidence of an improvement in the two segments, power and renewable energy, that CEO Larry Culp is restructuring for growth. If Culp does manage to improve margin at those two businesses then they could provide some very useful FCF support to GE in the future.

The second positive catalyst came from the news on coronavirus vaccines. Simply put, GE is likely to be a big winner from a vaccine. Not only will its key aviation segment receive a boost from a recovery in air travel, but its healthcare segment will also benefit from an improvement in non-COVID-19 procedures. Furthermore, the power segment should improve as site access improves.

Source Fool.com