Get Ready for the Conglomerates to Report: General Electric, 3M Company, and United Technologies Corp.
General Electric Co. (NYSE:GE) reports Friday, we hear from 3M Company (NYSE:MMM) on July 22nd, and United Technologies Corporation (NYSE:UTX) on July 21st. Will these three massive U.S. Conglomerates have anything good to say about the state of the economy, more importantly will it be good news for their share prices?
(LearningMarkets.com) General Electric Co. (GE) is scheduled to announce earnings before the market opens on Friday, July 16th. Looking at the analyst consensus, it appears most traders believe GE is going to announce a profit of 27 cents per share.
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Comparing the consensus estimate with GE's profit of 26 cents per share a year ago, you can see that most analysts believe the company performed better this year than it did last year.
As you prepare for GE's announcement on Friday, remember that a profit of 27 cents per share has already been priced into the value of the stock. So if earnings come in at that level, we probably won't see much change in the price of the stock---unless the company changes its outlook for the future. It's also important to remember that good earnings don't always lead to higher stock prices.
GE has gained 33 cents (1.88%) during the past week and is currently trading below its 20-day and 50-day moving averages but above its 200-day moving average.
Investors will also be evaluating other stocks in the Conglomerates industry as GE announces its earnings to see if any of the same factors that are influencing GE may also come to bear on those stocks.
United Technologies Corp. (UTX) is the second largest company in the Conglomerates industry---behind GE---(based on market cap), and has been doing well recently. During the past year, UTX has seen earnings per share (EPS) grow by $4.27. Looking at UTX's recent stock performance, UTX has gained 12 cents (0.16 percent) during the past month and is currently trading below its 20-day and 50-day moving averages but above its 200-day moving average.
3M Co. (MMM) is also a member of the Conglomerates industry. Looking at the same time frame, MMM has watched EPS expand by $5.05. MMM has gained $2.48 (2.98 percent) during the past month and is currently trading below its 20-day moving average but above its 50-day and 200-day moving averages.