Is GE Stock a Good Investment?


Quick Answer

General Electric's favorable earnings outlook and high dividend yield made the company's stock a good investment in 2014, according to Bidness Etc. The ongoing restructuring and positive long-term growth prospects are other reasons that make GE stock an attractive investment for 2015, according to Market Watch.

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Full Answer

GE operates across a variety of business segments, notes Bidness Etc. These range from transportation and energy management to health care and aviation. This makes the company's stock a good fit for investors seeking low-risk diversification.

There are other reasons why GE stock is a good investment in 2015, notes Market Watch. The company's industrial division is expected to grow in double digits, while the health care division remains buoyant. The continued integration of the energy grid business acquired in 2014 from Alstom, a French multinational, into GE's core operations is expected to boost the conglomerate's bottom line over the long term. The conglomerate's renewable energy and nuclear power businesses are also expected to enjoy increased success as countries around the world continue investing in clean energy sources.

The company's divestiture from Synchrony Financial, a consumer financial services company with cyclical revenue streams is expected to stabilize GE's earnings outlook, according to Market Watch. And unlike a number of newer startups, the company's asset base is solid; as of 2015, GE's assets are worth over $650 billion. That figure includes $50 billion in long-term investments and $90 billion in cash.

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