GE Aerospace Surges 2.94% Amid Strategic Expansion and Analyst Hype – What’s Fueling the Rally?

Summary
• Citi initiates Buy rating with $386 price target, Susquehanna upgrades to Positive with $350 target
• $75M expansion in Muskegon County to create 160 jobs, reinforcing aerospace manufacturing footprint
• U.S. Navy awards $22M contract for F414 engine upgrades, boosting defense backlog
• Zacks upgrades to Moderate Buy as earnings estimates rise 5.7% in 3 months

GE Aerospace (GE) has surged 2.94% to $316.25, trading near its 52-week high of $316.67. The rally is driven by a confluence of analyst upgrades, strategic defense contracts, and expansion projects in Muskegon County. With institutional ownership at 74.77% and a dynamic P/E of 40.6, the stock’s momentum reflects optimism about its aerospace and defense dominance.

Strategic Expansion and Analyst Hype Drive GE Aerospace's Rally
GE’s 2.94% intraday gain stems from a perfect storm of analyst upgrades, defense contracts, and expansion projects. Citi and Susquehanna both initiated coverage with Buy and Positive ratings, targeting $386 and $350, respectively, citing megatrends in aerospace. The U.S. Navy’s $22M F414 engine upgrade contract and the $75M Muskegon expansion—creating 160 jobs—underscore GE’s entrenched role in defense and commercial aviation. Meanwhile, Zacks’ Moderate Buy rating highlights rising earnings estimates, with analysts raising FY2025 EPS forecasts by 5.7% in three months. These catalysts, combined with GE’s 75% share of commercial flight engines via CFM International, have ignited investor enthusiasm.

Aerospace & Defense Sector Gains Momentum as RTX Surges 2.05%
The Aerospace & Defense sector, led by RTX’s 2.05% intraday gain, mirrors GE’s bullish momentum. RTX’s rally reflects broader industry optimism around defense spending and commercial aviation recovery. GE’s 2.94% surge outpaces RTX, driven by its unique combination of defense contracts, expansion projects, and analyst upgrades. While RTX benefits from sector-wide tailwinds, GE’s CFM International joint venture and U.S. Navy partnerships position it as a standalone growth story.

Options Playbook: High-Leverage Calls for Aggressive Bulls
• MACD: 0.43 (bullish divergence), RSI: 65.4 (neutral), 200D MA: $257.95 (far below current price)
• Bollinger Bands: Price at $316.25, above upper band of $306.12, signaling overbought conditions
• Key Levels: Support at $299.53 (200D MA), resistance at $316.67 (52W high)

Two options stand out for aggressive bulls: GE20251226C315 and GE20251226C317.5.

GE20251226C315
• Code: GE20251226C315, Expiry: 2025-12-26, Strike: $315
• IV: 21.93% (moderate), Leverage: 87.66%, Delta: 0.54 (moderate), Theta: -1.56 (high decay), Gamma: 0.049 (high sensitivity), Turnover: $215,309
• Payoff: At 5% upside ($332.06), payoff = $17.06/share. High leverage and gamma make this ideal for a short-term breakout.

GE20251226C317.5
• Code: GE20251226C317.5, Expiry: 2025-12-26, Strike: $317.5
• IV: 21.25% (moderate), Leverage: 135.43%, Delta: 0.415 (moderate), Theta: -1.26 (high decay), Gamma: 0.0497 (high sensitivity), Turnover: $21,973
• Payoff: At 5% upside ($332.06), payoff = $14.56/share. Aggressive bulls may target this for a high-leverage play on a potential $320+ breakout.

Action: If $315 breaks, GE20251226C315 offers high gamma and leverage for a short-term rally. For a more aggressive bet, GE20251226C317.5 targets a $330+ move.

Backtest GE Aerospace Stock Performance
The backtest of General Electric's (GE) performance following a 3% intraday surge from 2022 to the present reveals significant gains. The strategy achieved a 357.73% return, vastly outperforming the benchmark return of 42.97%. The excess return was 314.76%, indicating that the surge contributed significantly to the overall performance. The strategy's CAGR was 47.34%, which is robust and suggests steady growth over the period.

Position for a Breakout: Watch $315 Support and $320 Resistance
GE’s 2.94% rally is underpinned by analyst upgrades, defense contracts, and expansion projects, but sustainability hinges on breaking above $316.67 (52W high). Key levels to watch: $315 (strike of top call) and $320 (next resistance). RTX’s 2.05% gain in the sector suggests broader momentum, but GE’s unique catalysts—CFM’s 75% commercial engine dominance and U.S. Navy partnerships—position it as a standalone play. Aggressive bulls should target GE20251226C315 if $315 holds, while a $320+ move could justify GE20251226C317.5. Monitor turnover and IV for liquidity shifts.