GE: Actually, Almost All Signs Point To A Strong Future

General Electric (NYSE:GE) is a company that is widely covered by the investment community, and currently there are many analysts/commentators that believe that the conglomerate's stock is set for a pullback due to one main reason --the company's current valuation. These analysts believe that GE is overvalued from an earnings perspective because the company is trading at a price-to-earnings ("P/E") ratio of ~29 (per finviz), which is indeed rich when compared to the company's historical valuations, but, in my opinion, GE shares are fairly valued when you dig deeper into the numbers and really consider all of the moving pieces (more on this below).

More importantly, GE has multiple catalysts in place that have the potential to greatly impact future earnings and these catalysts should be considered when evaluating this company as a long-term investment. As such, the analysts that are focusing their reports/articles only on the current GAAP (generally accepted accounting principles) metrics, without considering the bigger picture, are really missing a big part of the story.

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