GE Shares Climb 1.61% Amid Underperforming HealthCare Unit and 7.8% Post-Earnings Plunge Rank 88th in $0.99B Daily Volume

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 8:23 pm ET1min read
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Aime RobotAime Summary

- GE shares rose 1.61% on 8/12/2025 with $0.99B volume, but its underperforming GEHC division fell 12.5% over 52 weeks, lagging the S&P 500.

- Despite Q2 revenue growth and raised 2025 EPS guidance, GE's stock plunged 7.8% post-earnings due to 1.8% adjusted EBIT decline and margin contraction.

- Analysts remain cautiously optimistic: 13 of 19 rate "Strong Buy," with a mean $87.79 price target (20.3% upside) and Stifel's $90 target (23.3% upside).

- A backtested volume-based trading strategy showed $2,340 gains from 2022-2025 but faced a -15.3% drawdown on 10/27/2022, highlighting market volatility risks.

On August 12, 2025, General Electric (GE) saw a 1.61% rise in its stock price, with a trading volume of $0.99 billion, ranking 88th in market activity for the day. The company’s healthcare division, GE HealthCareGEHC-- Technologies (GEHC), has faced persistent underperformance against broader market benchmarks. Over the past 52 weeks, GEHCGEHC-- shares have fallen 12.5%, lagging the S&P 500’s 19.3% gain, while its year-to-date decline of 6.6% contrasts with the index’s 8.4% return. Despite Q2 revenue growth of 3.5% year-over-year to $5 billion and an upgraded 2025 adjusted EPS guidance to $4.43–$4.63, the stock plummeted 7.8% post-earnings release due to a 1.8% decline in adjusted EBIT and a 70-basis-point margin contraction.

Analyst sentiment remains cautiously optimistic. Of 19 covering the stock, 13 hold “Strong Buy” ratings, one “Moderate Buy,” and five “Hold.” Stifel Nicolaus analyst Rick Wise reiterated a “Buy” rating with a $90 price target, implying a 23.3% upside. The mean price target of $87.79 reflects a 20.3% premium, while the highest Street target of $106 signals a potential 45.2% gain. Forward-looking metrics, including a 0.6% expected EPS growth for fiscal 2025, underscore mixed near-term expectations despite consistent earnings beats in the past four quarters.

A backtested strategy of purchasing the top 500 stocks by daily volume and holding for one day generated a $2,340 profit from 2022 to 2025. However, the approach faced a maximum drawdown of -15.3% on October 27, 2022, highlighting inherent volatility risks despite potential gains.

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