Track market-moving stories before they get noisy

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Tyler Crowe, Matt Frankel, and Jon Quast discuss:

Uber’s acquisition of Delivery Hero.How “sticky” are ridesharing apps.GE Aerospace’s earnings.Can AI infrastructure cause supply chain headaches for others?Mailbag: How to view emerging industries & technologies.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on July 16, 2026.

Tyler Crowe: Who ordered the Uber acquisition today on Motley Fool Hidden Gems Investing? Welcome to Motley Fool Hidden Gems Investing. I'm your host for today, Tyler Crowe, and today I'm joined by longtime contributors Jon Quast and Matt Frankel. Earning season is starting to heat up. Not as many companies are rolling in. We're going to start to see that later in the month and early August, but we do have some early trickles in. Notably today, we had GE Aerospace. We'll also get to our mailbag, where we have some listener questions.

But we want to start today with the big announcement from Uber Technologies, who announced that they are going to acquire Germany delivery company, Delivery Hero in a $14.8 billion deal. Now, this has been telegraphed a little bit. Uber already had an outstanding stake in the company, and they agreed to acquire from, I believe it's, I hope I don't pronounce this wrong, but Prosus, they had a stake in the company, and they've agreed to sell it to Uber. Uber is going to have a 53% stake with this and then do a voluntary, “Hey, who wants to sell their shares to us, we'll buy them at a set price.” That's how the deal is structured. There's also a little bit of sell some of Deliver Hero’s assets in certain countries to avoid any jurisdiction, regulatory, anti trust issues. But I think the big thing to me, and, Matt, I want to really read in on this here. When I think of Uber, we always think of, like, hailing more specifically than delivery, and so this $14.8 billion deal seems to be like, Hey, we really want to be much more in delivery than we do just the ride share part.

Matt Frankel: Most investors don't realize it. But Uber's mobility, which is the name for the Rideshare business, and their delivery bookings are almost dead even, almost 50-51 in terms of booking volume. Now, the average person spends more on a delivery order than on a mobility order. You might get an Uber ride somewhere for $10, but the average meal you have delivered $50 or $60. Both grew about 25% year over year in the most recent quarter, but Rideshare is still Uber's biggest revenue source by a significant margin. They take roughly a 50% larger cut from bookings on ride-share versus delivery. This deal will make the delivery business significantly larger by bookings compared with Rideshare.

The bigger question here, as you mentioned, is why? Delivery Hero has an established presence in several markets already, so this allows Uber to expand its physical reach without building market by market, which is expensive and a risk. It roughly doubles the number of markets where Uber will offer both delivery and Rideshare in its app, which is a big competitive advantage. Speaking of competitive advantages, this is really a response to DoorDash, which has been aggressively expanding internationally and is really trying to outcompete Uber.

Tyler Crowe: Jon, not to like completely discount it, too, but in addition to rideshare delivery, which is creating this ecosystem, they do have a rather burgeoning advertisement business, as well, that, can layer onto this rather well, right?

Jon Quast: I think that there's absolutely an angle here that we need to consider with advertising, not to discount anything that Matt just said, I mean, there is a competitive angle here to this acquisition of delivery hero. Certainly DoorDash figures into the equation somewhere. But as you think about what Uber is, people don't realize how big and important the advertising business is. Really, it was the launch of advertising that propelled Uber to become a profitable business a few years ago and really just changed those economics considerably.

Now, if you think about what does it take to build a digital ad business, you really want platform adoption and interaction with that platform so that you can display the digital ad to the user, to the eyeballs, if you will. If it can get people adopting the platform more, the Uber platform, if it can get people interacting with the platform more, that's a greater chance for digital advertising. You want to grow both the mobility, the ride sharing, but also the delivery, the meal delivery because that's another, if you will, just another touch point with that end user. I think that as you're considering, hey, how do we build this food delivery or grocery delivery even more than what we have today? I think that there is an aspect that the management team is thinking, how do we get people interacting more with the platform because we want to show them an ad because that's really good for our business?

Tyler Crowe: It's funny, they say bad news comes in three, but I just want to say, news in general comes in three because, Matt, you, myself, and our Tuesday potting buddy, Lou Whiteman, we actually had a member live Q&A earlier this week, and Uber came up, specifically related to a lawsuit or a legal fight that they're picking with Alphabet's Waymo and it's related to autonomous taxis in Washington, D.C. area. We don't have to get into the details, but it's basically like Uber is saying, Hey, you need some humans every once in a while, and Waymo saying, No, you don't. But look, the broader point was, I think the legal fight exposed that, these ride-hailing or ride-sharing apps, whatever we want to call them, may not necessarily have that sticky network effect as much as people have initially believed. But does that same problem show itself in the food delivery segment, Ubers, delivery, DoorDash? Does that segment of the baby, is it as sensitive to this network, that, Well, I can pick whatever app I want, and it's not quite as sticky as, maybe food delivery is?

Matt Frankel: Well, it's not an easy answer. One conclusion that we drew in the discussion that you're talking about is that Waymo doesn't really need Uber's app to dominate a market. It certainly helps, especially at first, but it isn't totally necessary on a long-term basis. Riders are simply going to gravitate toward the largest and most liquid booking marketplace in their area. With delivery, there's even less stickiness in a lot of ways. Most people have two or three delivery apps on their phone. Many restaurants are on multiple platforms, so it's not exclusive. Usually, at least DoorDash and Uber Eats, and customers can price compare between the two apps. Some run fee specials on one app, but not the other. It's really not a sticky platform, but on the other hand, the Uber 1 membership platform that covers rides and delivery, that can be a competitive advantage when it comes to customer loyalty. DoorDash doesn't have the rideshare aspect of that. But the acquisition shows that scale and market density are really the true cues to winning in this business, not a sticky customer base.

Jon Quast: I just want to add on here a little bit. When we talk about network effects, I think that Uber does have a network effect, and it is a big deal. You think about what does it have? It has a two-sided marketplace. You have the consumer on one end, the person who needs a ride, but then you also have the driver on the other end. These are people voluntarily coming to the Uber platform saying, I'm going to offer my services here because there are potential customers on the other side of that marketplace and vice versa. That is really powerful, and I think that when you are a brand such as Uber, that is ubiquitous in many regards, that makes a big deal.

But what Waymo does is it's actually disrupting the game in an important way. It's not a two-sided marketplace. It's a one-sided marketplace. Can you gain that ubiquity with the one-sided business model cause you don't need the driver? That's my point. You're having the driverless cars. Really, it's just the proliferation of the vehicles themselves in those markets. It's disrupting the game, not that Uber doesn't have a powerful network effect. If we're playing the two-sided marketplace game, that's really important. But if autonomous vehicles are able to change the rules of the game by offering the one sided marketplace, I think that's where, this does get a little bit disruptive.

Tyler Crowe: All right, so we've got burgeoning advertising business that's layered on. It's creating profitability. It's growing market share and overall revenue and deliveries for all of it's part of the apps. But, we're talking about the risks here. I want to put you a little bit both on the spot with our last question here. Shares of Uber are more or less flat for a little over two years now, and I think they traded it I think when I checked this morning it's like 18 times earnings. Is this deal for Deliver Hero enough of a move-the-needle deal for this company? Or do you see this as like, it's just still treading water? I can't say I'm too interested in the stock right now.

Matt Frankel: For me, the answer is not really, and for two reasons. For one, this feels like more of a defensive move to me than an offensive growth strategy. No. 2, the multiple compression we've seen in Uber lately. You mentioned the stock's been flat for two years, even though the business has grown. It's primarily from worries about the ride-share side of the business, specifically Waymo, as a real threat to that part of the business. For those reasons, I don't think this is going to be a needle mover, but it's going to, be a preventative move.

Jon Quast: This is just a hot take for me, but I'm pretty lukewarm on this deal for Uber, mostly because it already has this really large international presence as a brand. I think it has incredible brand recognition globally. Then to acquire these assets from delivery hero and Uber CEO saying that he really appreciates some of these assets, I don't see that these assets are superior to its own. I think that Uber has superior assets. To spend this much money to acquire what I would consider inferior assets in international markets, that doesn't make a lot of sense to me, so I'm lukewarm on this deal right now, still processing it, but that's how I feel.

Tyler Crowe: All right, fair enough. Coming up after the break, we're going to talk about GEO spaces earnings.

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Tyler Crowe: Last week on the podcast, we talked about GE Vernova quite a bit, talking about the advantages, disadvantages, how it's been the strange darling of the GE breakup. It only seems fair that we discussed GE Aerospace because it did report earnings earlier today. The company's results beat expectations. Management raised guidance. But as we're taping this show right now, shares are down about 3.2%. Guys, can you help me connect the dots here. At least, as far as I saw, it seemed pretty good.

Matt Frankel: For one thing, and I know Jon has some thoughts about this, the market clearly had high expectations going into this. I was trading for about 50 times forward in earnings before this report. Even though management raised guidance, they still flagged a few things that represent uncertainty, like elevated jet fuel prices, the macro environment, things like that. Demand is clearly outpacing supply here, which is good for pricing power, at least in the short term, but it also means that GE can't fully capture its opportunity right now, and I think that's a little bit of what investors are reacting to, as well.

Jon Quast: I would definitely double down on the valuation component here. You think about stocks that outperform the market. Usually growth is a very big component of that outperformance, and you look at how big and mature GE Aerospace is at this stage of the game. It's hard for me to imagine it's sustaining above average growth over the long term from here, and to Matt's point, trading right now at I believe it's 43 times its earnings, that's quite elevated relative to the average valuation of the stock market right now. I think that even if the stock, I think there's a case where the stock could drop further to come down to a reasonable valuation, but even if it doesn't, I think that it's going to have to sustain some really powerful, impressive growth over the next several years just to justify where it's at right now. I think that even though it did deliver that double beat, I think that investors are saying, maybe this is a little bit too hot to handle right now, and we'll just trim our position.

Tyler Crowe: The thing that stood out to me, and this is taking it in a slightly different direction, thinking a little bit more of, like, supply chains and what's going on in the manufacturing world of America right now is that commentary from management about that availability of material for spare parts. It wasn't just like, we're running a little short on something. It was specifically like material because there happens to be another major turbine maker, GE Vernova, who also is building way more turbines than they can basically fulfill right now. They've got a five-year backlog on what they need to do. I don't want to sound like a broken record, I would call it, like, the super niche, only maybe five people might get this joke, but whenever I say AI infrastructure, I'm most be like, Pee-Wee Herman was like, Ah, you said the secret word because we seem to do it every single day now.

But, that AI infrastructure build-out and AI's, infrastructure's ability to hoover up every spare dollar of capital or spare part out there. The capital expenditures that are going into this are crowding out a lot of other spaces. As we think about GE Aerospace and supply chains and disruption and like AI being the whale of the manufacturing industry and gobbling up everything it can, is there a real risk for these non-AI companies like GE Aerospace, that could run into supply chain crunches and cost inflation from AI taking up all its spare capacity?

Jon Quast: I want to just try to illustrate a little bit the tension that you're bringing out here, Tyler, and this is a complicated supply chain story with GE Aerospace. If you recall coming out of the pandemic, the pandemic certainly disrupted supply chain immensely, and a huge part of this business is the spare parts business, the repair business, right, that maintenance revenue, and if you look at what it just did in the most recent quarter, GE Aerospace, record internal shop visits. It is fixing stuff at some record volume here and so that's a really big deal. It is coming out of those supply chain constraints from the pandemic, breaking records in some places. But then at the same time, it said that material availability restraints grew 20% from the previous quarter. On one hand, I would say that GE Aerospace is getting it done operationally. It is definitely doing a lot of work and fixing supply chains where it can, and at the same time, as you highlighted, the AI market is just sucking up all this demand out there from so many places. It is still struggling to keep up with supply chain needs, and so it's a complicated story.

Matt Frankel: Spare parts demand is exceeding available supply. They have a $210 billion backlog. They can't get materials fast enough. The parts that go into turbines and data centers aren't identical. But they do use the same universe of specialty metals manufacturers. It's totally possible we'll see costs and lead times here get worse before they get better.

Tyler Crowe: It'll be an interesting thing to see, again, because it is hard to underestimate that ability of AI infrastructure to just suck up all the available resources, considering, you can go like four or five levels down the supply chain right now, and they're like, we're strained, and our backlogs are growing like crazy. It'll be curious to see if anyone that's not AI-related can end up getting the parts they need because it could be a challenge down the road. Coming up after the break, we'll jump into the mailbag.

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Tyler Crowe: Hey, everyone, just a quick reminder. If you want to get a question into us, you can email us at podcast at fool.com. That's podcast with an s at fool.com. It's also in the show description. If you need a link. At three requests when you do it or number one, keep it Foolish. Two, keep it short enough, we can read on air and three, we can't give any personalized advice, so try to keep it as general as possible.

Today's question comes from Suleiman in Saudi Arabia. The question is, hello, fools. I found your podcast my first week of the job in 2024, and I haven't missed a single episode since. Hey, thanks for that Suleiman. That's awesome. I learned so much how to analyze companies and ask right questions. Question that he had was with many new emerging industries, there are some companies that are leading a small market with huge potential for expansion, and the one that he was specifically talking about here is Deep Sea mining. However, the industry is still facing legislative obstacles and operational uncertainties. Is this considered a foolish investment or an unnecessary risk? There's one company that he asked about specifically, and that's The Metals Company, which is Ticker TMC. Guys, I'm going to let you take a swing at it, and then I'll see if I can wrap it up at the end.

Jon Quast: This is a great question, and I think that emerging trends are pretty difficult when it comes to investing, and that is because they are so grounded in the future, none of us are very good at predicting the future with certainty. We all are limited in time and space. It's challenging. There are three questions that I would ask as I approach an emerging trend. Here's the first question. Will it emerge? Second, when will it emerge? Third, how will it emerge? Will it, when will it, and how will it? Those are really three important things to answer if you're going to start investing in a trend.

To the first one, will it emerge? I can rewind the clock to 3D printers when this was just coming out onto the market. I don't even remember how long ago anymore, but it was probably over 10 years ago. I really was a believer that these were going to be in every single home in the United States in the world. It was going to be completely like a TV in your home. You're going to have a 3D printer. Alas, it did not play out that way.

Three-D printing is bigger today than it was 10 years ago, but it didn't play out the way that a lot of us were thinking about at the time, or a lot of people were talking about. Did it emerge? Not really. Second, when will it emerge? Now, quantum computing is another example that we can use here. It's a huge in the public awareness right now, quantum computing is big because there's publicly traded companies and stocks are doing well. But those of us who have followed the quantum computing space much longer, I think, 20 years or so. This has taken a long time to play out. Directionally, I think it's still right, but the speed at which it is being adopted and coming to fruition is way behind what some people would have projected years ago, and maybe there's still a long time yet. When will it emerge? Hard to say. But finally, how will the trend play out?

Because you can theoretically be right about a trend, and you can be right about a timeline, but it might take a different route or go down some different train tracks than you anticipated, and therefore, the opportunity is in a place that you didn't really expect when you started investing. I would use e-commerce as an example here. Did e-commerce play out and very quickly? Yes, it did.

But think about how many of the physical retailers were able to lean into omnichannel. Now, e-commerce played out maybe differently than we thought, so maybe we thought that Walmart would be completely disrupted. But in reality, Walmart’s become one of the largest e-commerce players in the world because it leveraged its existing store base as a distribution center network through omnichannel. It played out quite differently, and I think that you would have invested a little bit differently depending on if you could foresee how it was playing out.

Matt Frankel: I want to expand on what Jon just said about how you can be directionally right about a trend, but the investment opportunities might be a different story. Think of the dot-com era, which is right around when I started investing. Being right about the trend and which companies will be the biggest winners from a trend are two completely different things. The Internet changed the world. No doubt. It's been the biggest technological change in our lifetimes. Period. Some of the highest flying stocks of the dot-com boom, pets.com is a good example. If you just said, who, that's my point. It went to zero, and investors lost a ton of money, but Amazon survived and thrived. It had a true cost advantage. It was building a scale advantage.

Business fundamentals that apply no matter what the trend is. I’m not well-versed in deep-sea mining, at least not enough to intelligently comment on the opportunities there. But quantum computing has a lot of parallels. Should you invest in the pure-play quantum stocks with impressive technologies or the established businesses with deep pockets and just happen to have quantum divisions like Cisco and IBM? The market misjudging timing and, market size with emerging industries is a common pattern. Jon mentioned 3D printing. That's exactly what happened there. Keep that in mind when it comes to position sizing and the real possibility that some of the most hype stocks in any trend could go to zero.

Jon Quast: With this question regarding Deep Sea mining in The Metals Company, let's say that you have satisfied yourself with the answers of will it, when will it, and how will it? The other thing to consider here is the economics. Assuming that Deep Sea mining plays out as a trend in the timeline that you think the metals company is a leader in the space, are the economics of that business at scale ones that are attractive for an investment? Because oftentimes, mining isn't a very compelling investment venture from an economic perspective. The economics are complicated and not always the most attractive. That would be the further question that I would ask once you've answered the other three.

Tyler Crowe: Jon stole my thunder a little bit here because I might be the only deranged person who follows materials in mining of the three of us a little bit. With a lot of these, like, speculative mining companies that are like, pre-revenue, and they put all these things like, Man, if we could mine all of this, it's trillions and trillions of dollars worth of revenue. No. 1, they always tend to over inflate how much is actually, like, available for them to recover. No. 2, they always underestimate the costs. They always tend to overestimate the profits with, the cost of metals at the time that they're acquiring it. On paper in the investor decks, it looks spectacular. But then when, the rubber hits the road and all the capital that means to go into these things, they tend to not turn out great.

Now, I'm not saying that The Metals Company is exactly going to go this way, but I feel like I've read 40 or 50 investor decks that looked a lot like this. One of the things I always say is there are multibillion-dollar mega mining giants out there, and they're not touching this. There's probably a reason. If they were to see some big mining backing from this, that could be the case. But otherwise, this is really, like, you might as well be buying Lottery tickets.

That's my thought on mining. You can tell I'm not exactly a huge fan of it, even though I have studied it in the past. Guys, that's all the time we have for today. Matt, Jon, I want to thank you for sharing your thoughts. I’m going to hit disclosure, and we'll get out of here.

Always, people on the program may have interest in the stocks to talk about, and The Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements or sponsored content provided for informational purposes only. See our full advertising is closer, please check out our showrooms. Thanks for producer Bart Shannon and the rest of The Motley Fool team for Jon, Matt, and myself. Thanks for listening, and we'll chat again soon.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

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The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider TransDigm Group?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. TransDigm Group (TDG - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $10.26 a share, just 11 days from its upcoming earnings release on August 4, 2026.

By taking the percentage difference between the $10.26 Most Accurate Estimate and the $10.21 Zacks Consensus Estimate, TransDigm Group has an Earnings ESP of +0.42%. Investors should also know that TDG is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TDG is part of a big group of Aerospace stocks that boast a positive ESP, and investors may want to take a look at GE Aerospace (GE - Free Report) as well.

GE Aerospace is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on October 20, 2026. GE's Most Accurate Estimate sits at $2.01 a share 88 days from its next earnings release.

The Zacks Consensus Estimate for GE Aerospace is $1.99, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.78%.

Because both stocks hold a positive Earnings ESP, TDG and GE could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

GE Aerospace (GE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this industrial conglomerate have returned -6.8%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Aerospace - Defense industry, which GE falls in, has lost 2.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

GE is expected to post earnings of $1.96 per share for the current quarter, representing a year-over-year change of +18.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.9%.

The consensus earnings estimate of $7.82 for the current fiscal year indicates a year-over-year change of +22.8%. This estimate has changed +5.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $8.86 indicates a change of +13.3% from what GE is expected to report a year ago. Over the past month, the estimate has changed +2.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GE.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For GE, the consensus sales estimate for the current quarter of $12.45 billion indicates a year-over-year change of +10.1%. For the current and next fiscal years, $50.81 billion and $55.1 billion estimates indicate +20.1% and +8.4% changes, respectively.

Last Reported Results and Surprise HistoryGE reported revenues of $12.63 billion in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $2.02 for the same period compares with $1.66 a year ago.

Compared to the Zacks Consensus Estimate of $11.86 billion, the reported revenues represent a surprise of +6.52%. The EPS surprise was +8.6%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

GE is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about GE. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

At the Farnborough International Airshow, a heavily modified Saab 340B turboprop quietly achieved a breakthrough that the commercial aviation sector has long viewed as a distant dream. Operating above 30,000 feet, a megawatt-class hybrid-electric propulsion system sustained flight for over two hours.

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For GE Aerospace NYSE: GE, this successful collaboration with NASA and Boeing NYSE: BA validates the engineering viability of high-voltage, high-altitude hybrid commercial flight.

The successful deployment of this technology at commercial cruise altitudes shatters the engineering ceiling that previously restricted electric aviation to low-altitude air taxis and short-hop experimental aircraft. GE Aerospace proved that hybrid-electric architecture can eventually scale to commercial jetliners.

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By combining traditional fuel consumption with high-capacity electric battery power, GE Aerospace is actively drafting the blueprint for next-generation propulsion.

Pulling the Sustainable Aviation Timeline ForwardStructural transitions in the physical economy do not happen overnight. The immediate takeaway is not that legacy jet engines will disappear tomorrow, but rather that GE Aerospace has established a strong research-and-development moat. This milestone pulls the timeline for sustainable aviation forward by a decade.

If airlines begin replacing their narrowbody fleets in the late 2030s to comply with tightening global regulatory mandates, this foundational technology positions GE Aerospace to dictate the terms of the market. Regulatory bodies have historically lagged behind localized commercial deployment, meaning governments will mandate sustainable flight only after a manufacturer proves it can be done safely and at scale. By clearing the 30,000-foot hurdle today, the engineering gap between GE Aerospace and its competitors is widening, establishing a clear pathway to long-term dominance in the aerospace sector.

$210 Billion Backlog: Fueling Margins on the GroundThe market does not award a trailing price-to-earnings ratio of 40 just for successful science projects. Investors pay for ruthless execution and highly visible cash flow. While the hybrid-electric milestone captures headlines, the underlying fundamentals of GE Aerospace justify its $354 billion market capitalization.

Second-quarter 2026 earnings delivered a resounding beat, with GE Aerospace posting $2.02 in earnings per share against a $1.86 consensus estimate. This profitability was driven by a 21.1% year-over-year revenue expansion.

More importantly, GE Aerospace is operating with extreme efficiency. Net margins stand at a robust 17.72%, while return on equity has reached an exceptional 40.56%. In a highly capital-intensive industry, generating a 40% return on shareholder equity indicates that executives are highly effective at allocating capital to profitable projects rather than burning cash on low-yield ventures.

The ultimate driver of this financial performance is unyielding commercial demand, crystallized in a staggering $210 billion backlog. During the Farnborough event, traditional propulsion systems demonstrated their immediate scale. CFM International, the highly successful joint venture between GE Aerospace and Safran OTCMKTS: SAFRF, finalized a memorandum of understanding with IndiGo for more than 1,000 LEAP-1A engines. Additional agreements secured hundreds of engine packages for leasing giants like BOC Aviation and SMBC Aviation Capital.

To protect profitability amid inflationary pressures on raw materials and engine durability kits, GE Aerospace leaned heavily on its proprietary FLIGHT DECK operational system. This internal initiative successfully increased shop visit output and streamlined maintenance operations, effectively shielding a 21.7% operating profit margin.

Turbulence Ahead: The Supply Chain Reality CheckDespite the exceptional demand profile, the aerospace sector is currently wrestling with severe macro headwinds, primarily taking the form of raw material bottlenecks and supply chain constraints.

During the latest earnings call, CEO Larry Culp explicitly stated that the operational hurdle is a supply-side challenge. There are no victory laps being taken in the executive suite. While order growth surged 17%, spare parts delinquency increased 20% sequentially. Airlines are desperate for engines and replacement parts, but manufacturers are struggling to forge and assemble components fast enough to meet that demand.

This logistical bottleneck highlights why the hybrid-electric propulsion breakthrough poses no immediate existential threat to legacy airline models. The multi-decade lifecycle of existing commercial airframes means the transition will be gradual. A systemic overhaul of global aviation infrastructure would take time, and the immediate displacement of fossil-fuel engines is logistically impossible.

Beyond commercial aviation, GE Aerospace continues to bolster its defense portfolio. A recent partnership with Shield AI successfully integrated the X-Bat engine, enabling thrust vectoring and vertical flight capabilities. This dual-use capability across both the commercial and defense sectors provides a stabilizing revenue stream against potential disruptions to the commercial supply chain.

Capital Allocation: The Silent Earnings EngineThe most compelling near-term catalyst for GE Aerospace is not found in the clouds, but on the balance sheet. High-level research and development expenditures require strong free cash flow, and GE Aerospace is deploying that cash to drive aggressive shareholder yield.

During the second quarter, GE Aerospace repurchased 14.1 million shares for $4.22 billion. GE Aerospace still has $17.99 billion remaining under its active $20 billion buyback authorization. For investors, this aggressive capital-return program serves as a structural floor for valuation.

When GE Aerospace retires a significant portion of its outstanding shares, it artificially compresses forward valuation multiples by reducing the denominator in the earnings-per-share calculation. Currently trading at a forward price-to-earnings ratio of 43 and a price-to-sales multiple of 7.7, the stock appears richly valued at first glance. The relentless execution of this $20 billion buyback authorization will systematically increase the ownership stake of remaining shareholders while driving earnings growth, even if top-line revenue temporarily slows due to supply constraints.

Boarding Pass: Strategizing the Aerospace TransitionThe financial mechanics of the pure-play aerospace transition have attracted heavy institutional conviction, with ownership currently sitting at a dominant 75%. Prominent capital inflows from entities such as the Bessemer Group validate Wall Street's confidence in GE Aerospace's long-term trajectory.

GE Aerospace offers a unique combination of immediate, high-visibility cash flow and long-term technological dominance. The legacy $210 billion backlog funds the research required to lead the next generation of hybrid-electric flight, effectively creating a self-sustaining cycle of innovation and profitability.

While technological breakthroughs push sustainable aviation timelines forward, the true underlying value for current investors lies in the immediate execution of share repurchases and margin protection. Investors with a long-term horizon might consider buying shares during periods of broader market volatility, recognizing that GE Aerospace is effectively paying them to wait through an extensive buyback program while it engineers the future of commercial flight.

Should You Invest $1,000 in GE Aerospace Right Now?Before you consider GE Aerospace, you'll want to hear this.

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GE Aerospace Chairman and CEO Larry Culp discusses the company's order backlog, supply chain investments, and how improved deliveries from key suppliers is helping to boost output. He speaks with Guy Johnson on the sidelines of the Farnborough International Air Show 2026.

© Lukas Wunderlich / iStock Editorial via Getty Images

GE Aerospace CEO Larry Culp used a Farnborough Air Show appearance on CNBC this morning to spotlight its advanced technology and strong second-quarter results. GE Aerospace (NYSE:GE | GE Price Prediction) said its testbed aircraft flew across the Atlantic under partial hybrid electric power to reach the show, then delivered a Q2 report that put commercial services growth, engine deliveries, and aftermarket spare parts all on the same steep trajectory.

Culp framed the flight as a technology proof point. “We had the first ever high altitude hybrid electric flight crossing the Atlantic to bring that plane here. This is a first of its kind. And as you might imagine, we’re terribly excited,” he said, describing the SAAB A340 testbed program run in collaboration with Boeing (NYSE:BA), Beta Technologies, and NASA. He was careful to set realistic expectations: “Hybrid electric is a key part of that. So nothing imminent in terms of a product launch. But this is a strong proof point that hybrid electric will be part of that next generation commercial offering.“

The Numbers Behind the Headline GE Aerospace saw revenues increase 21% in the quarter, and earnings per share were up 22% year over year. Total engine deliveries were up 31% in the first half of the year, and aftermarket spare parts revenues were up over 30% in the same window. Commercial Engines & Services were up 27% to $9.73 billion, and Defense & Propulsion Technologies were up 16% to $3.44 billion. Free cash flow reached $3.03 billion.

Management lifted full-year 2026 guidance to adjusted EPS of $7.65 to $7.85, operating profit of $10.55 to $10.75 billion, and free cash flow of $8.90 to $9.20 billion.

A $210 Billion Order Book The demand signal driving those numbers is a backlog Culp put at $210 billion between new engines and aftermarket services. “Customers that we talk to are very keen to see us continue to ramp in partnership with our airframe partners,” he said. That ramp is tied directly to Boeing, whose 737 program is running at 42 per month and 787 program at 8 per month, with a Boeing commercial backlog of $695 billion. LEAP engines power the 737 MAX, and GEnx powers the 787.

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Q2 also brought LEAP engine deliveries up 24%, with recent commercial wins including a Copa Airlines agreement for up to 120 LEAP-1B engines and a Turkish Aerospace agreement for F404 engines on the HÜRJET trainer.

Durability Kits and Time on Wing Culp also updated investors on the LEAP durability kit rollout, a fix aimed at improving time on wing in hot and harsh operating environments. “Our narrowbody engine, our LEAP engine, saw a durability kit introduced last year on the Airbus version of that engine. We’ve got 40% of the fleet retrofitted already performing very well,” he said. GE has previously said the LEAP-1B durability kit is now certified, targeting roughly a 2x improvement in time on wing, with full cutover expected at the beginning of 2027.

What to Watch GE shares opened at $348.83 on Monday, July 20, up 13.55% year to date and up 34.7% over one year, against a Wall Street analyst target price of $397.86. Boeing sits at $214.03, down 1.42% year to date, a divergence that captures which side of the airframe-engine partnership has been executing at scale.

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FARNBOROUGH, England, July 20, 2026 (GLOBE NEWSWIRE) -- IndiGo, India’s largest airline and one of the world’s fastest-growing carriers, today announced it has signed an MoU (Memorandum of Understanding) with CFM International for an order of 1,000+ LEAP-1A engines to power 510 Airbus A320neo Family aircraft. This will be the largest single order ever placed for LEAP engines and a record for CFM International.

The MoU also includes CFM’s extensive support in establishing IndiGo’s upcoming engine MRO facility (maintenance, repair and overhaul) and support IndiGo’s rapidly growing fleet through long term material services agreement, including supply of spare parts, ensuring high dispatch reliability, predictable costs, and world-class support as the airline further scales its operations.

On this occasion, Willie Walsh, Chief Executive Officer Designate, IndiGo said, “As IndiGo embarks on its next phase of growth towards becoming a truly global airline, we are delighted to extend our long-standing partnership with CFM International for the engines powering future deliveries of our Airbus A320/321neo Family aircraft fleet. CFM has been a trusted partner in our growth journey since 2016, supporting a fleet that now exceeds 375 A320/321 Family aircraft. The LEAP engine's industry-leading proven reliability makes it the ideal choice to support our scale, operational resilience and sustainability ambitions. This partnership reinforces our commitment to providing safe, reliable and efficient travel across an ever-expanding network in India and around the world.”

IndiGo has been a valued CFM customer for 10 years. In 2016, the airline operated a sub-fleet of Airbus A320ceo Family aircraft powered by CFM56-5B engines. In 2019, IndiGo deepened its relationship with CFM, ordering LEAP-1A engines for their newest fleet of Airbus A320/321neo Family aircraft.

“IndiGo has trusted CFM to support its performance for a decade now, and we're honored to renew that trust with today's agreement. LEAP engines are delivering up to twice the time on wing in hot and harsh operating environments than when they entered service, while continuing to provide fuel efficiency and reliability,” said H. Lawrence Culp, Jr., Chairman and Chief Executive Officer at GE Aerospace. “As we continue to strengthen the program to best serve our customers, GE Aerospace is also proud to build on more than 40 years of support for India’s aviation sector. With a strong installed base, manufacturing in Pune, a broad local supplier network, and advanced engineering in Bengaluru, we remain committed to supporting IndiGo’s growth and expanding our presence in India.”

CFM has a long-standing footprint on the Indian subcontinent, as India is CFM’s third-largest market, with five Indian carriers operating more than 400 LEAP-powered aircraft and 2,000 engines on order.

"This historic milestone reflects the long-standing partnership between IndiGo and CFM. It underscores the trust that airlines place in the performance and value delivered by the LEAP engine”, said Olivier Andriès, Chief Executive Officer of Safran. “As one of the world’s fastest-growing aviation markets, India is of strategic importance to Safran. Through our continued investments in the country, particularly in LEAP engine production and MRO capabilities, we are strengthening our long-term commitment to supporting IndiGo’s remarkable growth and to contributing to the development of Indian aerospace industry."

Last year, Safran inaugurated its largest MRO (maintenance, repair, overhaul) center for the LEAP engine. The 45,000-square-meter facility will ramp up to a capacity of 300 LEAP shop visits a year and boast a next-generation test bench.

With more than 10,000 engines delivered to date, CFM LEAP engines have experienced the fastest ramp in commercial aviation history. CFM continues to upgrade the LEAP fleet with a high-pressure turbine (HPT) durability kit to extend time on wing and a reverse bleed system (RBS) to lower airline maintenance burden. The company is focused on delivering high engine availability through exceptional MRO performance and competitive cost of ownership, with the benefits of aftermarket competition through its open MRO ecosystem.

About IndiGo
IndiGo is India’s preferred and amongst the fastest growing carriers in the world. IndiGo has a simple philosophy: offer fares that are affordable, flights that are on time, and provide a courteous and hassle-free travel experience across its unparalleled network. With its fleet of 430+ aircraft, the airline operates approximately 2200 daily flights, connecting 95+ domestic and 45+ international destinations, and welcomed more than 123 million customers in FY26. IndiGo was named the ‘Best Airline in India and South Asia’ by Skytrax at the World Airline Awards 2025 and the sixth Most Punctual Airline in Asia-Pacific in 2025 by the global aviation analytics firm, Cirium. For more information, please visit http://www.goindigo.in/ or download our mobile app.

About CFM International
A 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, CFM International has redefined international cooperation and helped change the course of commercial aviation since its founding in 1974. Today, CFM is the world’s leading supplier of commercial aircraft engines with a product line that sets the industry standard for efficiency, reliability, durability, and optimized cost of ownership. CFM International produces the LEAP family of engines and supports LEAP and CFM56 fleets for operators worldwide. For the future of air transport, CFM’s RISE program is accelerating development of new propulsion technologies that will pave the way for the next generation of aircraft. Discover more at www.cfmaeroengines.com  

Signing Ceremony between IndiGo and CFM

Signing Ceremony between IndiGo and CFM IndiGo, India’s largest airline and one of the world’s fastest-growing carriers, today announced it ...

FARNBOROUGH, England, July 19, 2026 (GLOBE NEWSWIRE) -- The GE Aerospace (NYSE: GE) GEnx-1B engine has surpassed the 50 million flight hour mark in just over 14 years, the fastest rate ever for GE Aerospace commercial widebody engine model.

The GEnx-1B, which powers the Boeing 787 Dreamliner family, is currently in service with more than 50 operators around the world and is averaging a total of over 600,000 flight hours monthly. The engine boasts a 99.98% dispatch reliability rate and stays on-wing at a rate three times higher than competing engines.

Mohamed Ali, President & CEO, GE Aerospace Commercial Engines & Services, said: “Airlines need engines that deliver reliability, durability, predictability, and efficiency across some of the world’s most demanding routes, and the GEnx-1B continues to do exactly that. Reaching 50 million flight hours for the GEnx-1B in less than 15 years is a remarkable milestone, and it reflects the trust our customers place in GE Aerospace every day.”

The GEnx engine family has more than 2,700 engines in service, including spares. The GEnx-2B has accumulated 24 million hours since entering service in 2011 on the Boeing 747-8. In total, the GEnx engine family has nearly 75 million flight hours and nearly 12 million cycles.

The long-haul flights the GEnx engine powers traverse some of Earth’s harshest environments. Over the last decade, GE Aerospace has upgraded the GEnx engine’s high-pressure turbine blades and combustor coating technology, more than doubling time on wing in harsh environments.

GE Aerospace is also investing $1 billion this year across our U.S. manufacturing sites and supply chain, with over $100 million dedicated to enhancing supplier capabilities for programs like the GEnx engine. These investments focus on increasing engine production capacity, modernizing facilities, and strengthening the supply chain to meet high demand.

Continued support through service innovation
GE Aerospace has implemented a number of on-wing technologies available for the GEnx, including:

360 Foam Wash: designed to break down and remove dust and dirt particles. GE Aerospace’s 360 Foam Wash can help improve engine compressor efficiency, reduce fuel consumption, lower CO2 emissions, and extend time between shop visits.

Blade Inspection Tool (BIT): This technology gives GEnx-1B and -2B customers clear and consistent insight during HPT Stage 1 & Stage 2 blade inspections. Blade inspectors with integral cameras capture images with cutting edge AI technology, extracting and presenting them for review. BIT enables the user to measure both lines and areas on blade surfaces, to make an accurate assessment of the condition of hardware.

FlightPulse: A GE Aerospace application developed for pilots to measure their fuel use and other statistics against those of their peers or against their own previous flights so they can self-discover areas to optimize operations and efficiency.

GEnx’s revenue-sharing participants are IHI Corporation of Japan, GKN Aerospace Engine Systems of the UK, MTU of Germany, TechSpace Aero (Safran) of Belgium, Safran Aircraft Engines of France and Samsung Techwin of Korea.

About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 50,000 commercial and 30,000 military aircraft engines. With a global team of approximately 57,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.com.

GE Aerospace NYSE: GE is telling investors a familiar story after its Q2 2026 earnings report on July 16. The stock dropped about 5% in early trading the day after the release, despite strong top and bottom-line beats. The company also raised its full-year guidance.

GE Aerospace Today

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$353.95 +8.22 (+2.38%)

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52-Week Range$254.66▼

$382.97Dividend Yield0.53%

P/E Ratio43.75

Price Target$370.33

That pattern of a strong earnings report followed by a stock price decline has been the case for the last two earnings reports.

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The reason is a familiar one—valuation. GE trades at around 46x forward earnings, which is a premium to the S&P 500.

It’s also expensive compared to its historical average. But that needs some context, because GE Aerospace has only existed since 2024, when General Electric spun off its energy and healthcare businesses into GE Vernova NYSE: GEV and GE Healthcare Technologies NASDAQ: GEHC, respectively.

That means the “what have you done for me lately?” sentiment impatiently expressed by many investors may actually be an apt way of analyzing GE.

Aging Fleets Are Driving GrowthThe headline earnings numbers were impressive. Revenue of $12.63 billion beat estimates for $11.87 billion and was over 21% higher year over year (YOY). Earnings per share (EPS) of $2.02 beat the forecasted $1.86 and was also 21% higher YOY. Orders were up 17%, and free cash flow (FCF) was up a whopping 43%.

Those numbers looked even stronger over the first half of 2026. Orders grew 49% YOY to $39.5 billion. Adjusted revenue for the half rose 27%, and FCF climbed 31% to $4.7 billion.

As impressive as the headline numbers were, there’s a reason that GE Aerospace was willing to raise its full-year revenue and earnings outlook. The company is getting high demand from its airline customers who need to maintain aging fleets.

Management’s commentary provided more specifics. Commercial services revenue grew 32% in the first half, and total engine deliveries rose 31%. GE credited its internal "FLIGHT DECK" lean operating program for cutting shop turnaround times by roughly a week since the end of 2025. That helped drive record internal shop visit output during the quarter.

Defense demand added a second growth engine. GE's Defense & Propulsion Technologies segment posted a 1.55x book-to-bill ratio for the first half, meaning new orders outpaced revenue by 55%. Revenue in that segment grew 17% for the half, with strong contributions from Avio Aero.

Backlog Still the Real StoryMaking the results even stronger is the company’s reported backlog of over $210 billion. That backlog gives GE unusual visibility into future revenue, since engine orders typically convert into decades of service revenue once delivered. New wins in the quarter included Copa Airlines selecting up to 120 LEAP-1B engines and a U.S. Air Force contract for an autonomous collaborative platform design review.

The Guidance Raise Was SweepingThe expectation of continued strong demand was a catalyst for GE to raise its full-year 2026 guidance for revenue, earnings, operating profit, and FCF.

GE didn't just nudge its 2026 outlook higher. It raised guidance across every major line item. Adjusted EPS guidance moved to $7.65–$7.85, up from a prior $7.10–$7.40 range. At the low end, that's a 20% increase from the company's full-year adjusted EPS in 2025.

Operating profit guidance climbed to $10.55–$10.75 billion, versus a prior $9.85–$10.25 billion. Free cash flow guidance rose to $8.9–$9.2 billion, and revenue growth guidance moved from "low double digits" to "high-teens." Management credited robust services demand and equipment deliveries for the upgrade.

Is GE Overvalued?At around 46x forward earnings, GE is trading at a premium to the S&P 500 and its own historical average. However, the company’s free cash flow (FCF) grew by more than 40% year over year in the quarter.

That cash generation is showing up in shareholder returns, too. GE repurchased $2 billion of stock in the second quarter alone, and diluted share count fell by 24 million shares year over year. The company also ended the quarter with $9.3 billion in cash, or $10.3 billion including short-term investments.

Skeptics will note that kind of FCF growth may not be sustainable, but it’s important to remember that the current iteration of the company has only been in existence since 2024. That means the five-year valuation models, whether FCF or EPS, are factoring in business units that no longer exist for GE Aerospace.

It’s possible that GE falls back a little more, but there’s likely to be a floor above a rising 50-day simple moving average. That means any dip may be short-lived, which is supported by analyst sentiment. The consensus price target for GE is $365.61, and since July, several analysts have raised their targets, with Jefferies offering the highest at $455.

Free cash flow also indicates that the dividend is safe and will likely grow again. Right now, that dividend is more of an afterthought, but it’s not an insignificant reason to make the stock a core holding.

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In fact, despite one of the company’s strongest quarters in recent memory, Culp insisted there would be “no victory laps.”

The comment wasn’t about managing expectations. It reflected a broader shift in GE Aerospace’s investment story. For years, investors worried whether commercial aviation demand would fully recover after the pandemic. Now, management says the bigger challenge is keeping up with it.

Demand Isn’t The Problem AnymoreThe clearest evidence came during the question-and-answer session, when Culp described the company’s outlook beyond 2026.

“It’s much more a supply side challenge than it is demand,” Culp said, adding that “there are no victory laps here in Evendale today” as the company prepares for another year of growth.

That theme surfaced repeatedly throughout the call.

Culp said customer behavior has remained resilient despite macro uncertainty, pointing to robust service orders, declining parked aircraft and an oversubscribed maintenance network as signs that airlines continue investing in engine maintenance and fleet availability. He added that demand has been “far more resilient than maybe many of us would have expected.”

Mohamed Ali, president and CEO of Commercial Engines & Services, delivered perhaps the simplest summary of management’s view. “We do not have a demand problem,” Ali said.

Instead, executives repeatedly pointed to supply chain capacity, manufacturing throughput and maintenance output as the factors that will determine how much of that demand GE Aerospace can ultimately convert into revenue.

The Next Growth Story Is ExecutionThat helps explain why Culp spent as much time discussing Flight Deck, supplier collaboration and factory productivity as he did the quarter’s financial results.

The company highlighted AI-enabled process improvements that cut demand-signal processing time by nearly 90%, production initiatives that reduced lead times for critical engine components, and supplier Kaizens that improved inspection times by 90%.

Those efforts are aimed at solving what management increasingly sees as its primary bottleneck: delivering enough engines, spare parts and shop visits to satisfy an industry where demand continues to outpace available capacity.

The strategy appears to be working. GE Aerospace ended the quarter with a commercial services backlog of roughly $170 billion, while CFO Rahul Ghai said more than 95% of third-quarter spare-parts revenue is already backed by orders in hand and planned shop removals exceed the company’s full-year guidance by more than 40%.

Why Investors Should Pay AttentionMany industrial companies spend earnings calls convincing investors that demand is healthy. GE Aerospace largely skipped that conversation.

Instead, management argued that the long-term opportunity is already in place, supported by an installed engine base of roughly 80,000 engines, decades-long service contracts and a growing aftermarket business. The focus now is on expanding capacity fast enough to capitalize on it.

That’s why Culp’s “no victory laps” remark may have been the most revealing quote of the call. Even after raising guidance across the board, GE Aerospace’s leadership is signaling that future shareholder returns will depend less on whether airlines keep flying and more on whether the company can continue removing the operational bottlenecks standing between record demand and record results.

GE Stock Price Activity: GE Aerospace shares were up 2.54% at $354.50 at the time of publication on Friday, according to Benzinga Pro data.

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Tony Bancroft believes GE Aerospace (GE) posted great earnings but says the stock is pulling back over valuation concerns. He talks about how geopolitical tensions keep the company and its peers in the forefront of U.S. defense spending and highlights arms of GE's business he expects to see significant growth.

Key Takeaways GE reported Q2 2026 adjusted EPS of $2.02, topping estimates as adjusted revenues rose 24% year over year.GE secured major engine orders, while commercial services and aftermarket demand lifted CES results.GE raised 2026 revenue, profit, EPS and free cash flow guidance following strong first-half performance. GE Aerospace (GE - Free Report) reported second-quarter 2026 adjusted earnings of $2.02 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $1.86 by 8.6%.

It is worth noting that in April 2024, GE Aerospace emerged as a separate public company following the spin-off of GE Vernova Inc. (GEV - Free Report) from General Electric.

Total revenues were $13.35 billion, reflecting a year-over-year increase of 21%. Adjusted revenues came in at $12.63 billion, which rose 24% year over year and surpassed the consensus mark of $11.86 billion by 6.5%. Robust commercial services activity supported the results.

GE Orders Gain on Strong Customer DemandTotal orders increased 17% year over year to $16.5 billion. The company secured several commercial and defense wins, including an agreement with Copa Airlines for up to 120 LEAP-1B engines.

GE also received orders from Turkish Aerospace for F404 engines and Leonardo Helicopters for CT7 engines.

CES Growth Fueled by Shop Visits and PartsThe Commercial Engines & Services (CES) segment’s revenues rose 27% year over year to $9.73 billion in the second quarter of 2026. The gain was driven by services growth of 26%, with internal shop visit revenues up 25%. Spare parts revenues increased more than 25%, reflecting robust aftermarket demand.

Equipment revenues in CES advanced 30%, supported by unit volume growth of 26%, including a 24% increase in LEAP deliveries. Segment operating profit increased 20% to $2.66 billion, though the operating margin narrowed 160 basis points to 27.3% as installed engine growth, including GE9X, investments and inflation weighed on profitability. Total orders in the segment rose 18% year over year to $12.93 billion.

Defense Segment Adds Volume and Pricing SupportThe Defense & Propulsion Technologies segment’s revenues increased 16% year over year to $3.44 billion in the second quarter of 2026. Defense & Systems revenues were up 12%, driven by growth in both services and equipment, including unit deliveries rising 7%.

Propulsion & Additive Technologies revenues grew 23%, led by Avio Aero. The segment’s operating profit rose 18% to $475 million. The operating margin expanded 30 basis points to 13.8%, as higher volume and pricing more than offset the effects of mix, investments and inflation. Total orders for the segment advanced 12% year over year to $4.14 billion.

GE Profit Rises Despite Margin PressureGE Aerospace’s cost of sales, comprising costs of equipment and services sold, increased 26.7% year over year to $8.67 billion. Selling, general and administrative expenses rose 10.9% year over year to $1.13 billion. Research and development expenses totaled $460 million, reflecting a year-over-year increase of 28.1%.

In the second quarter, the company’s operating profit increased 18% year over year to $2.75 billion, while the operating profit margin contracted 130 basis points to 21.7%.

GE Aerospace Generates Strong Cash FlowGE ended June with $9.35 billion in cash, cash equivalents and restricted cash. Total borrowings were $19.16 billion, including $2 billion of short-term debt and $17.16 billion of long-term borrowings.

In the first six months of 2026, cash from operating activities surged 39% year over year to $3.26 billion. Free cash flow increased 43% to $3.03 billion, reflecting stronger earnings and cash conversion.

The company repurchased 14.1 million shares for roughly $4.22 billion during the period. Its remaining authorization under the $20 billion share-repurchase program was approximately $17.99 billion.

GE Raises 2026 Guidance Across the BoardGE now expects 2026 adjusted revenue growth in the high-teens range, up from its prior low-double-digit outlook. Operating profit is projected between $10.55 billion and $10.75 billion compared with the previous forecast of $9.85-$10.25 billion.

Adjusted earnings are expected in the range of $7.65-$7.85 per share, up from $7.10-$7.40 expected earlier. Free cash flow is forecast between $8.9 billion and $9.2 billion compared with the earlier projection of $8-$8.4 billion.

Commercial Engines & Services revenues are now expected to grow about 20%, with operating profit of $10.25-$10.35 billion. Defense & Propulsion Technologies revenues are forecast to rise at a low-double-digit rate, with operating profit between $1.6 billion and $1.7 billion.

Zacks Rank and Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of other top-ranked stocks from the same space are discussed below:

General Dynamics Corporation (GD - Free Report) presently carries a Zacks Rank of 2. General Dynamics’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%.

In the past 60 days, the Zacks Consensus Estimate for GD’s 2026 earnings has inched up 0.1%.

Lockheed Martin Corporation (LMT - Free Report) currently carries a Zacks Rank of 2. Lockheed Martin’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 9.4%.

In the past 60 days, the Zacks Consensus Estimate for LMT’s 2026 earnings has inched up a penny.

HomeIndustriesAerospace/DefenseEarnings ResultsEarnings ResultsRevenue growth guidance for 2026 was also raised, but it implied a slowdown in the second half of the yearUpdated July 16, 2026, 9:54 a.m. ET

GE Aerospace's stock falls after earnings, again, despite and profit beat and raised outlook. Photo: Getty ImagesShares of GE Aerospace fell Thursday, after the jet-engine maker and defense contractor raised its full-year profit outlook but showed the rapid order growth it recently experienced was slowing down.

The raised outlook marked a change for the company, as GE was reluctant to do so three months ago despite a big earnings beat because of uncertainties over fuel prices, and how that would affect air-travel demand amid the Iran conflict.

Power Struggle: Wolfspeed Sues Navitas Over AI ChipsGE Aerospace NYSE: GE reported double-digit growth across key second-quarter 2026 metrics and raised its full-year outlook, citing strong commercial services demand, improved operating execution and a backlog that management said provides visibility into the rest of the year.

Chairman and CEO Larry Culp opened the call by saying CFM International is supporting Ryanair in the investigation into Flight 1879. “Safety is our top priority at all times,” Culp said, adding that the company’s thoughts are with the passengers, pilots and crew on board.

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MarketBeat Week in Review – 07/06 - 07/10For the second quarter, Culp said total orders rose 17%, revenue increased 24%, operating profit grew 18%, earnings per share increased 22% and free cash flow rose 43%, with conversion above 140%. He said the results capped an “exceptional first half,” with orders up 49%, revenue up 27%, EPS up 24% and free cash flow up 31%.

Commercial Services Drive Growth CFO Rahul Ghai said second-quarter operating profit was $2.7 billion, up 18%, driven by services volume and price. EPS was $2.02, up 22%, reflecting higher operating profit, a lower tax rate and a reduced share count. Free cash flow was $3 billion, up 43%, helped by higher earnings and an approximately $200 million reduction in working capital and advances and progress collections.

Industrials Are Leading in 2026, But These ETFs Take Different RoutesIn the Commercial Engines and Services segment, orders rose 18%, with services orders up 22%. Segment revenue increased 27%, including 26% services growth. Ghai said internal shop visit revenue grew 25%, including LEAP internal shop visits up more than 50%, while spare parts sales increased more than 25% due to improved material availability, LEAP external channel growth and price.

Despite the strong shipment growth, Ghai said spare parts delinquencies increased 20% sequentially in the quarter, reflecting continued material availability constraints. Commercial equipment revenue grew 30%, with engine deliveries up 26%, including LEAP deliveries up 24%.

Commercial Engines and Services profit rose 20% to $2.7 billion. Margins declined 160 basis points to 27.3%, which Ghai attributed to installed engine growth, GE9X investments and inflation.

Defense and Propulsion Backlog Expands In the Defense and Propulsion Technologies segment, orders increased 12%, revenue grew 16% and profit rose 18%. Ghai said defense book-to-bill was 1 in the quarter and 1.7 in the first half. Total DPT backlog exceeded $30 billion, up about $5 billion since the start of the year.

Culp highlighted several defense-related developments, including an agreement with Turkish Aerospace Industries to provide F404 engines for the HÜRJET advanced jet trainer program and the selection of CT7 engines for the U.K. Ministry of Defence’s new medium helicopter program.

He also said the company completed an assembly readiness review for the XA102 adaptive cycle engine, moving the program from design into assembly and test. Culp said GE Aerospace continues to advance technologies for the collaborative combat aircraft market, with the GEK1500 and GE426 reaching milestones toward preliminary design review.

Company Raises 2026 Guidance GE Aerospace raised its full-year 2026 outlook across revenue, profit, EPS and free cash flow. Ghai said the company now expects overall revenue to grow in the high teens, up from a prior outlook of low double-digit growth.

Commercial Engines and Services revenue is expected to grow around 20%, up from a prior mid-teens outlook. Commercial services revenue is expected to grow in the low 20% range, up from a prior mid-teens outlook. Commercial equipment revenue is expected to grow around 20%, with LEAP deliveries up in the high teens. Defense and Propulsion Technologies revenue is expected to grow in the low double digits. Operating profit is expected to be between $10.55 billion and $10.75 billion. EPS is expected to be between $7.65 and $7.85. Free cash flow is expected to be between $8.9 billion and $9.2 billion. Ghai said the commercial services backlog stands at roughly $170 billion, up nearly $30 billion since the end of 2024. He said the company is entering the third quarter with more than 95% of spare parts revenue in backlog, similar to the second quarter, and that engines already off wing plus planned third-quarter removals exceed the company’s full-year shop visit guide by more than 40%.

Operational Improvements and LEAP Durability Culp said the company’s FLIGHT DECK operating model is helping improve safety, quality, delivery and cost. He cited a roughly 60% reduction in production lead time for a critical F110 component in Lynn, Massachusetts, and a nearly 50% reduction in CFM56 final assembly lead time at the Celma maintenance, repair and overhaul site in Brazil.

Culp also said the company used artificial intelligence to automate parts of its demand signal process across turbine airfoils, cutting the number of demand signals in half and reducing processing time by nearly 90% across 190 parts. He said priority supplier material input increased double digits sequentially and year-over-year again in the second quarter.

On the LEAP engine program, Culp said GE Aerospace recently completed certification for the LEAP-1B durability kit, including an upgraded high-pressure turbine blade. He said the kit is expected to deliver roughly a twofold improvement in time on wing, with full MRO and new engine cutover expected early next year. LEAP turnaround times are now around 100 days, down more than two weeks year-over-year, and Culp said the company has reached “nearly zero” grounded LEAP-powered aircraft due to engines.

During the question-and-answer session, Culp said customer behavior has not changed despite a dynamic macroeconomic environment, and that service orders remain robust. Ghai said commercial services momentum should carry into 2027, while Culp said services growth is more constrained by supply than demand.

Asked about free cash flow, Ghai said the company expects cash flow to grow with earnings, though conversion should normalize over time. On margins, he said pressures from installed engine growth, LEAP services ramp-up and GE9X losses are timing-related, and that both Commercial Engines and Services and total company margins are expected to expand in 2028 and beyond.

Culp closed by saying the company’s priorities remain delivering for customers, improving time on wing and lowering cost of ownership, with FLIGHT DECK helping turn those goals into measurable results.

About GE Aerospace NYSE: GEGE Aerospace NYSE: GE is the aerospace business of General Electric, focused on the design, manufacture and support of aircraft engines, integrated propulsion systems and related aftermarket services. The company serves commercial airlines, airframers, business and general aviation operators, and defense customers, providing propulsion solutions for a broad range of aircraft types from single‑aisle airliners to widebody and military platforms.

Its product portfolio includes a family of commercial and military jet engines as well as spare parts, components and systems engineering.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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16.7.2026 15:15, GE

Americký výrobce leteckých motorů General Electric Aerospace oznámil výsledky hospodaření za druhý kvartál roku 2026. Tyto výsledky překonaly očekávání, když společnost díky robustnímu růstu komerčních služeb a rekordním dodávkám motorů navýšila očištěné tržby o 24 % a očištěný zisk na akcii o 22 %. Na základě výkonnosti v první polovině roku společnost plošně zvýšila svůj celoroční výhled, a to již posedmé od začátku roku 2024. Podle analytika TD Cowen však navýšení výhledu vzhledem k vysokým očekáváním trhu nemusí být dostatečně dobré.

Výsledky společnosti General Electric Aerospace (GE) za 2Q 2026   2Q 2026 Konsensus 2Q 2026 2Q 2025 Očištěné tržby (mld. USD) 12,63 11,86 10,15 Čistý zisk (mld. USD) 2,80 -- 2,39 Očištěný zisk na akcii (EPS, USD/akcie) 2,02 1,86 1,66 Výsledky za 2Q Očištěné tržby meziročně vzrostly o 24 % na 12,63 mld. USD a překonaly tak tržní konsensus ve výši 11,86 mld. USD.

Tržby z komerčních motorů a služeb dosáhly 9,73 mld. USD (meziroční růst o 27 %) a předčily tak očekávání trhu ve výši 9,16 mld. USD. Tržby ze služeb rostly o 26 %, když tržby z interních servisních návštěv vzrostly o 25 % a tržby z náhradních dílů o více než 25 %. Tržby z prodeje zařízení se zvýšily o 30 % díky 26% růstu objemu dodaných jednotek, včetně 24% nárůstu u motorů LEAP. Objednávky v tomto segmentu zaznamenaly meziroční růst o 18 % na 12,93 mld. USD.

Vývoj tržeb z komerčních motorů a služeb, zdroj: GE Aerospace

Tržby z obranných a pohonných technologií společnost reportovala ve výši 3,44 mld. USD (+16 % meziročně) a překonaly tak analytický konsensus 3,20 mld. USD. Objednávky v tomto segmentu meziročně vzrostly o 12 % na 4,14 mld. USD.

Vývoj tržeb z obranných a pohonných technologií, zdroj: GE Aerospace

Očištěný provozní zisk meziročně vzrostl o 18 % na 2,75 mld. USD při očištěné provozní marži 21,7 %, která meziročně poklesla o 1,3 p. b. vlivem vyššího podílu dodávek nových instalovaných motorů (včetně GE9X), investic a inflace.

Očištěný volný hotovostní tok (FCF) dosáhl 3,03 mld. USD (+43 % meziročně) při projekcích 1,98 mld. USD.

Hodnota nově přijatých objednávek za dané období činí 16,5 mld. USD (+17 % meziročně), přičemž celkový objem nezpracovaných zakázek (backlog) přesahuje 210 mld. USD.

Celkové dodávky motorů se v první polovině roku zvýšily o 31 %, včetně 41% růstu dodávek motorů LEAP. Společnost zároveň upozornila, že očekává pokračující omezení v dodavatelském řetězci a inflační tlaky, jejichž dopady se nadále snaží zmírňovat.

Meziroční vývoj očištěného zisku na akcii, zdroj: GE Aerospace

Celoroční výhled Společnost na základě výsledků za první pololetí a výhledu na zbytek roku plošně navýšila celoroční výhled:

Růst očištěných tržeb ve vyšších desítkách procent (high-teens), oproti dřívějšímu očekávání růstu v nízkých dvouciferných procentech. Očištěný provozní zisk v rozmezí 10,55 až 10,75 mld. USD (dříve 9,85 až 10,25 mld. USD). Očištěný zisk na akcii ve výši 7,65 až 7,85 USD (dříve 7,10 až 7,40 USD) při analytickém konsensu 7,56 USD. Očištěný volný hotovostní tok (FCF) v rozmezí 8,9 až 9,2 mld. USD (dříve 8,0 až 8,4 mld. USD) při odhadech 8,37 mld. USD. Segment komerčních motorů a služeb nyní pro rok 2026 očekává růst tržeb o cca 20 % (dříve v polovině desítek procent) a provozní zisk v rozmezí 10,25 až 10,35 mld. USD (dříve 9,6 až 9,9 mld. USD). Segment obranných a pohonných technologií počítá s růstem tržeb v nízkých dvouciferných procentech a provozním ziskem 1,6 až 1,7 mld. USD (dříve 1,55 až 1,65 mld. USD).

Komentář CEO „GE Aerospace odvedla silný druhý kvartál, ve kterém tržby i zisk na akcii vzrostly o více než 20 % díky robustnímu růstu komerčních služeb. Náš systém FLIGHT DECK nadále pohání významná provozní zlepšení napříč službami i výrobou zařízení – v kvartálu jsme dosáhli rekordního objemu interních servisních návštěv a dodávky motorů v prvním pololetí vzrostly celkem o 31 %,“ uvedl předseda představenstva a generální ředitel H. Lawrence Culp, Jr.

Culp pokračoval: „Vzhledem k naší výjimečné dosavadní výkonnosti a viditelnosti pro zbytek roku plošně navyšujeme celoroční výhled. Do budoucna se soustředíme na to, co je pro naše zákazníky nejdůležitější: plnění zakázek v objemu přes 210 mld. USD a zároveň investice do současných i příští generací technologií, které prodlouží dobu motoru na křídle a sníží náklady na vlastnictví.“

Vývoj akcie Akcie General Electric Aerospace (GE) v přeburzovní fázi obchodování oslabují o 2,99 % na 349,56 USD.

Akcie GE Aerospace (GE) před výsledky na 360,35 USD Ukazatel   Ukazatel   Kapitalizace (mld. USD) 373,9 P/E 49,9 Vývoj za letošní rok (%) +17,0 Očekávané P/E 47,7 52týdenní minimum (USD) 254,7 Prům. cílová cena (USD) 373,9 52týdenní maximum (USD) 383,0 Dividendový výnos (%) 0,5 Zdroj: GE Aerospace, Bloomberg

Michal Bárta, Fio banka, a.s.

The maker of jet engines said it now expects adjusted earnings per share to be $7.65 to $7.85, up from a previous range of $7.10 to $7.40.

Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Kevin Hincks sees promise in GE Aerospace (GE) due to it being the sole engine provider of Boeing's (BA) 737 MAX jets.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about GE Aerospace (GE - Free Report) .

GE currently has an average brokerage recommendation (ABR) of 1.45, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.45 approximates between Strong Buy and Buy.

Of the 22 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 77.3% and 9.1% of all recommendations.

Brokerage Recommendation Trends for GE

Check price target & stock forecast for GE here>>>

While the ABR calls for buying GE, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is GE a Good Investment?In terms of earnings estimate revisions for GE, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $7.49.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for GE. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for GE may serve as a useful guide for investors.

GE Aerospace stock has rallied strongly over the past year, gaining about 43% as robust demand for commercial aviation and sustained defense spending in the United States and other key markets continued to support growth. The stock was trading at around $359 in pre-market trading, with investors awaiting the company's earnings report for fresh insight into its financial performance and whether it can justify its premium valuation.

GE Aerospace, one of the biggest industrial companies in the United States, has done well in the past few years, helped by its growing market share in the civil aviation and defense spending in the US and other allied countries.

The company will publish its financial results later this week, shedding more color on its business during the quarter. Data compiled by Yahoo Finance shows that the average estimate among analysts is that its revenue jumped by 16.7% in the second quarter to $11.85 billion.

Analysts also suspect that earnings per share (EPS) is expected to jump to $1.85 from the previous $1.66. Historically, the company has a long track record of doing better than what analysts expect.

Most notably, GE Aerospace’s annual revenue is expected to continue growing, with the annual figure expected to come in at $48.8 billion, followed by $53.76 billion next year.

A potential catalyst for the company is that it received some orders during President Donald Trump's trip to China. Chinese companies ordered 200 Boeing aircraft and related equipment, with many of them being powered by CFM, a joint venture of GE and Safran.

Valuation concerns remain A major concern among analysts and investors is that the company has become highly overvalued, with most metrics being much higher than other companies, including fast-growing companies like NVIDIA, AMD, and Micron.

SeekingAlpha data shows that the company has a forward price-to-earnings ratio of 47, higher than the sector median of 20. Including growth, the forward PEG ratio is 3.14, also higher than the sector median of 1.68.

The same valuation figure is also visible when using the discounted free cash flow (DCF) approach. A report by Simply Wall St. estimates that the company’s fair value is $248, meaning that it is 44.6% overvalued.

As such,the company will need to provide strong revenue, earnings, and backlog numbers to justify the valuation.

Analysts are largely optimistic about the company, with Susquehanna’s Charles Minervino hiking the target from $380 to $430. Sheila Kahyaoglu, a top analyst from Jefferies, hiked the target from $365 to $455, while Citigroup hiked to $431.

GE Aerospace stock chart | Source: TradingView 

The daily chart shows that the GE Aerospace stock jumped to a high of $383 on July 2nd, and then pulled back to the current $359.

This price remains slightly above the important support of $347, its highest point on February 24. It was the upper side of the cup-and-handle pattern, a common bullish continuation sign in technical analysis.

Therefore, the most likely scenario is where the stock drops and retests the support at $347, and then resumes the uptrend. In the future, despite the valuation concerns, the stock may jump to the key resistance level of $400.

READ MORE: GE stock falls 4% despite earnings beat on fuel costs, weak outlook

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. GE Aerospace (GE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

GE Aerospace is a member of our Aerospace group, which includes 77 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. GE Aerospace is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for GE's full-year earnings has moved 0.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, GE has moved about 16.6% on a year-to-date basis. At the same time, Aerospace stocks have gained an average of 2.4%. This means that GE Aerospace is performing better than its sector in terms of year-to-date returns.

Another stock in the Aerospace sector, Curtiss-Wright (CW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 36.9%.

For Curtiss-Wright, the consensus EPS estimate for the current year has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, GE Aerospace belongs to the Aerospace - Defense industry, a group that includes 39 individual stocks and currently sits at #100 in the Zacks Industry Rank. On average, stocks in this group have lost 0.6% this year, meaning that GE is performing better in terms of year-to-date returns.

Curtiss-Wright, however, belongs to the Aerospace - Defense Equipment industry. Currently, this 37-stock industry is ranked #58. The industry has moved +9.6% so far this year.

Investors interested in the Aerospace sector may want to keep a close eye on GE Aerospace and Curtiss-Wright as they attempt to continue their solid performance.

13.7.2026 14:09

Výsledková sezóna v USA se tento týden začíná rozbíhat. V centru pozornosti bude především finanční sektor, zejména výsledky velkých amerických bank, jako jsou JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi či Morgan Stanley. Investoři budou sledovat také výsledky správce aktiv BlackRock. Mimo finance budou důležité také výsledky ze segmentu polovodičů, kde reportují ASML a TSMC. Pozornost investorů přitáhne rovněž Netflix, zatímco zdravotnický sektor zastoupí UnitedHealth Group, Johnson & Johnson, Abbott a Intuitive Surgical.

Přehled vybraných společností reportujících své výsledky v tomto týdnu (zdroj: síť X - Earnings Whispers)

Úterý (14. července) USA (před trhem): JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi, Fastenal, Ericsson

Středa (15. července) USA (před trhem): Johnson & Johnson, ASML, Morgan Stanley, BlackRock, Progressive, The Bank of New York Mellon, PNC Financial Services, Elevance Health, Cintas, M&T Bank

USA (po trhu): United Airlines, J.B. Hunt Transport Services

Eurozóna (před trhem): ASML

Čtvrtek (16. července) USA (před trhem): UnitedHealth Group, General Electric, Abbott Laboratories, Prologis, U.S. Bancorp, Kinder Morgan, State Street, Citizens Financial Group

USA (po trhu): Netflix, Intuitive Surgical

Evropa (před trhem): ABB, Nordea Bank

Taiwan: TSMC

Pátek (17. července) USA (před trhem): The Travelers, Truist Financial, Fifth Third Bancorp, Regions Financial

Zdroj: Bloomberg, Earnings Whispers

Marek Krejčiřík
Fio banka, a.s.
Prohlášení

On July 10, 2026, GE Aerospace (GE) shares rose 0.1% to $359.27. The stock has experienced a 52-week range of $251.40 to $382.97, indicating significant volatil

The aerospace sector is soaring as global flight demand reaches new heights. If you’re choosing between GE Aerospace (GE +0.84%) and StandardAero (SARO 0.32%), which stock is the better buy?

GE Aerospace operates primarily as an engine manufacturer with a massive global footprint of commercial and military turbines. StandardAero serves as an independent provider of maintenance and repair services across the entire aviation ecosystem. Both companies benefit from increased flight activity, but they operate at different stages of the aircraft life cycle.

The case for GE AerospaceGE Aerospace sells jet and turboprop engines to commercial, military, and business aviation clients, relying on a massive installed base of over 44,000 commercial engines that generate high-margin service revenue for decades. The company maintains a strong competitive position as a leading manufacturer for the world's most popular aircraft while operating within the industrial stocks category. It serves a diverse range of customers across the global aviation landscape by providing both original equipment and comprehensive long-term maintenance solutions.

In fiscal 2025, revenue reached nearly $45.9 billion, growing roughly 18.5% year over year. This expansion helped GE achieve net income of close to $8.7 billion, resulting in a net margin of approximately 19%. Net income refers to the total profit remaining after all expenses and taxes are paid, serving as a key indicator of bottom-line success.

As of GE’s December 2025 balance sheet, the debt-to-equity ratio is approximately 1.1. This ratio compares total debt to shareholder equity to show how much the company relies on borrowed money. The current ratio, which measures the ability to pay short-term bills, is nearly 1. GE generated roughly $7.3 billion in free cash flow, which represents the cash remaining after paying for property and equipment.

The case for StandardAeroStandardAero provides aftermarket services like maintenance and repair for aircraft engines to approximately 5,000 global clients. Roughly 80% of its revenue comes from long-term agreements, though its top four manufacturer customers account for approximately 36% of total revenue. Customer concentration like this adds a layer of risk to the business because the loss of one major partner could significantly impact overall results.

For fiscal 2025, StandardAero reported nearly $6.1 billion in revenue, an increase of approximately 15.8% over the previous year. It achieved net income of about $277.4 million, with a net margin of nearly 4.6%. The company has shown significant improvement in profitability, moving from a net loss in earlier years to its current positive operating state as maintenance demand remains high.

On its December 2025 balance sheet, StandardAero maintained a current ratio of roughly 2.2. This indicates a strong ability to cover short-term liabilities using current assets like cash and inventory. The debt-to-equity ratio is approximately 0.9, showing a balanced capital structure. Free cash flow for the period reached nearly $234.3 million after accounting for capital expenditures, providing capital for future facility expansions.

Risk profile comparisonGE Aerospace faces risks from global supply chain disruptions and fluctuations in raw material costs. The company is also exposed to geopolitical tensions that could impact defense spending or international travel demand. Competition from other major engine manufacturers like RTX (RTX +0.15%) or Safran (SAFRY +1.75%) remains a constant pressure on market share and pricing power.

StandardAero carries substantial indebtedness of about $2.247 billion, which could limit its financial flexibility. The business depends heavily on authorizations from manufacturers like Rolls-Royce (RYCEY +2.24%) and Honeywell (HON +1.39%) to perform repairs. Additionally, the company is remediating material weaknesses in its internal controls over financial reporting, which may impact investor confidence and the accuracy of its financial statements.

Valuation comparisonStandardAero carries a significantly lower valuation based on its forward P/E, which tracks the share price against future earnings estimates, and its P/S ratio.

MetricGE AerospaceStandardAeroSector BenchmarkForward P/E48.523.2246.5P/S ratio8.31.6Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

One thing I find appealing about GE Aerospace is that its former parent company, General Electric, has a long history in the public markets. In fact, General Electric was part of the original 12 Dow Jones Industrial Average constituents. GE Aerospace has been publicly traded since 2024, but its parent company's long history and pedigree suggest it knows how to execute. GE Aerospace is also one of the largest businesses in the industrials space. Finally, I like that it pays a (modest) dividend.

StandardAero was a privately held company until 2024. It's had some issues reconciling how it reports its financials now that it's publicly traded, which I don't love, but that's not uncommon for companies making the transition from private ownership. On a purely valuation basis, StandardAero's stock is far more attractive than shares of GE Aerospace.

The conservative investor in me would probably prefer to buy GE Aerospace. The company has been in the aviation business in some shape or form for more than 100 years and has a massive installed base. It's also a much larger company than StandardAero. (We're talking a market cap of about $380 billion for GE versus $10 billion for StandardAero; it's like comparing a whale to a trout.) I think GE Aerospace's somewhat lofty valuation is partly because investors are paying for the perceived safety of an industrial giant.

Key Takeaways GE's Defense & Propulsion Technologies revenues rose 19%, with orders jumping 67% in Q1.GE secured defense contracts with Boeing Defence UK and a multi-year partnership with Palantir.GE expects mid-to-high single-digit 2026 revenue growth for its Defense & Propulsion Technologies segment. GE Aerospace (GE - Free Report) is benefiting from persistent strength in its Defense & Propulsion Technologies segment. After experiencing growth of 11% in 2025, revenues from the segment increased 19% year over year in first-quarter 2026. The surge in revenues was driven by the growing popularity for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector.

Some of the notable contracts secured by the company include a deal from Boeing Defence UK for the extension of support services for T700-GE-T701D engines. GE will be responsible for providing logistics management, repair, maintenance and technical support services for these turboshaft engines. Also, it entered into a multi-year partnership with Palantir Technologies Inc. (PLTR - Free Report) to improve the fleet management and operational readiness of the U.S. Air Force’s military aircraft.

The strong pipeline of projects boosted the Defense & Propulsion Technologies segment’s orders, which surged 67% in the first quarter on a year-over-year basis. The segment’s operating profit grew 17% to $379 million.

It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for GE Aerospace, which remains focused on its defense business.

Backed by favorable geopolitical developments and consistent government support, the company’s Defense & Propulsion Technologies segment is well-placed for growth in the quarters ahead. For 2026, GE expects revenues from the Defense & Propulsion Technologies segment to increase in the mid-to-high single-digit range.

GE's Peers in the Defense MarketHowmet Aerospace Inc. (HWM - Free Report) is benefiting from strong momentum in its defense aerospace market. After experiencing growth of 21% in 2025, revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.

Northrop Grumman’s (NOC - Free Report) defense market is playing an important role in driving its overall growth. In first-quarter 2026, revenues from Northrop’s Defense Systems segment climbed 5.2% year over year to $1.90 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.

GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 9.8% in the past six months against the industry’s 6.2% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 43.97X, above the industry’s average of 33.75X. GE Aerospace carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has increased over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Aerospace (GE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this industrial conglomerate have returned +11.7% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Aerospace - Defense industry, to which GE belongs, has gained 3.2% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

GE is expected to post earnings of $1.86 per share for the current quarter, representing a year-over-year change of +12.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $7.48 for the current fiscal year indicates a year-over-year change of +17.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $8.67 indicates a change of +15.9% from what GE is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for GE.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For GE, the consensus sales estimate for the current quarter of $11.86 billion indicates a year-over-year change of +16.8%. For the current and next fiscal years, $48.77 billion and $53.08 billion estimates indicate +15.2% and +8.8% changes, respectively.

Last Reported Results and Surprise HistoryGE reported revenues of $11.61 billion in the last reported quarter, representing a year-over-year change of +29%. EPS of $1.86 for the same period compares with $1.49 a year ago.

Compared to the Zacks Consensus Estimate of $10.64 billion, the reported revenues represent a surprise of +9.13%. The EPS surprise was +15.53%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

GE is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about GE. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.