In today's edition, industrials editor and analyst Brendan Byrnes discusses whether General Electric is an overrated or underrated Dow stock. GE's stock has had a great year, so far beating the Dow by nearly 10%. According to S&P Capital IQ, the average analyst recommendation for GE is 2.0 (1 = strong buy, 5 = strong sell), and the stock sports a four-star rating from our CAPS community. Brendan agrees with analysts on this one; he thinks GE is a fairly attractive play for income investors looking to minimize risk. It doesn't look as attractive as it did a year ago from a valuation standpoint, but its increasing focus on its industrial businesses and away from GE Capital should help drive growth in the future, and the 3.3% dividend is nothing to sneeze at. Check out the following video for more on GE.
For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.
Austin Smith owns shares of General Electric and Johnson & Johnson. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services recommend Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.