4-Star Stocks Poised to Pop: General Electric

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial behemoth General Electric (NYSE: GE) has earned a respected four-star ranking.

With that in mind, let's take a closer look at GE's business and see what CAPS investors are saying about the stock right now.

GE facts

Headquarters (Founded)

Fairfield, Conn. (1892)

Market Cap

$158.66 billion

Industry

Industrial conglomerates

Trailing-12-Month Revenue

$161.56 billion

Management

CEO Jeffrey Immelt (since 2001)
CFO Keith Sherin (since 1998)

Business segments

Technology Infrastructure, Energy Infrastructure, NBC Universal, Consumer and Industrial, Capital Services

Return on Equity (Average, Past 3 Years)

16.2%

Dividend Yield

2.7%

Competitors

Siemens (NYSE: SI)
Honeywell International (NYSE: HON)
United Technologies (NYSE: UTX)

CAPS Members Bullish on GE Also Bullish on

Microsoft (Nasdaq: MSFT)

CAPS Members Bearish on GE Also Bearish on

Ford Motor (NYSE: F)
Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 14,756 members who have rated GE believe the stock will outperform the S&P 500 going forward. These bulls include johngg123 and Haslett69.

Just last Friday, johngg123 highlighted GE as a juicy high-yielder waiting to happen:

[I]f the 31 cent dividend is ever reinstated, it will put this at a > 8% yield. [U]pside to $30 is more likely than downside to $7.5. I guess this is a bet that eventually that dividend will come back. Jeff Immelt says GE Capital is shrunken down and under control.

In an earlier pitch, Haslett69 also thinks the industrial titan will overcome its badly bruised arm:

An incredible company -- it's like buying five companies in one with great global diversification. They have taken a huge hit from GE Capital which is already factored into the price. They have the resources to capitalize on their strengths and grow in the most profitable areas. It may take awhile for the fear of GE Capital to work out of the marketplace but as it does and the segments of the company grow this one will outperform the S&P for many years. I do believe their dividend will slowly return to previous levels.

What do you think about GE, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Microsoft is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.

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