If you’re thinking about investing in the aerospace industry, you might want to consider GE Aerospace (GE 0.28%) stock.
GE Aerospace is a rebranding of GE Aviation, which is part of the spin-off of General Electric into three separate companies: GE Healthcare (GEHC 1.49%), GE Vernova (GEV 4.88%), and GE Aerospace. In this guide, we’ll break down how you can invest in GE Aerospace, whether the company is profitable, and the pros and cons of investing.
How to buy GE Aerospace stock
How to buy GE Aerospace stock
Investing in GE Aerospace is similar to investing in any other publicly traded company.
Step 1: Open a brokerage account
The first step to investing in stocks is to open a brokerage account. If you don’t already have an account, there are a multitude of online brokerages that allow you to trade with ease. Many offer commission-free trades and other perks, making it easier to buy and sell stocks without incurring extra fees.
Step 2: Figure out your budget
Before buying GE Aerospace stock, it's important to figure out how much you’re willing to invest and risk losing. Some factors you might want to consider are:
- Your financial situation and time horizon
- Why you're buying the stock
- Your risk tolerance
- Whether it helps your diversification strategy
Step 3: Do your research
Research is crucial to making smart investment choices. Here’s what you should focus on for GE Aerospace:
- Economic trends that could affect the industry: Try thinking about how changes in the economy or new technology could affect the aerospace industry and airline stocks. For example, during economic downturns, fewer people might fly. That could hurt airline companies and GE Aerospace, in turn.
- Company performance: You need to know if a company is making money before you invest, so be sure to check out GE Aerospace's latest earnings report.
- How its competitors are faring: You’ll want to compare GE Aerospace to other big names in the industry like Boeing (BA 0.52%) and Lockheed Martin (LMT -3.28%) to see how it measures up.
Step 4: Place an order
Once you're ready to purchase GE Aerospace by purchasing GE stock, it's time to place an order. There are a few different types of stock orders you can choose from:
| Types of Stock Orders | Definition |
|---|---|
| Market Order | Executes the trade immediately at the current market price. |
| Limit Order | Only executes when the stock reaches a specific price. |
| Stop Order | This becomes a market order when the stock hits a certain price. |
| Stop-Limit Order | Combines features of a stop and a limit order. |
Should you invest in it?
Should you invest in GE Aerospace stock?
GE Aerospace is an S&P 500 company, so many people will hold it in their portfolios through mutual funds and ETFs. However, depending on your goals, you may want to invest directly in the stock.
When you might consider investing in GE Aerospace:
- You believe that aerospace stocks are poised for a breakout and have a long-term upward trajectory. The aviation sector has bounced back after the pandemic. GE Aerospace is a major player in the jet engine market and stands to benefit immensely. Airlines are looking to upgrade and maintain their fleets and this rebound could support GE Aerospace's overall financial performance.
- You value General Electric's name and history. While GE Aerospace was a huge and important part of the business, GE also operated in diverse sectors like healthcare, energy, transportation, and power, which gave them an important role in American history. If you want to invest in General Electric's legacy, consider investing in GE Aerospace.
- You see long-term potential in GE Aerospace’s innovation. GE Aerospace focuses on next-gen engine technology and innovation in both the commercial and military sectors. This positions the company for future growth, especially if defense spending remains strong.
When you might avoid investing in GE:
- You are concerned about the aerospace industry's dependency on global supply chains. Like most aerospace companies, GE Aerospace relies on complex global supply chains. Any disruptions, such as those experienced during the pandemic, can delay production and negatively affect GE’s aerospace division.
- You want to invest in faster-growing sectors. If you're seeking rapid growth in emerging sectors like electric aviation or space exploration, GE Aerospace might not be a fit, as the company hasn't developed any major disruptive technology in recent years.
- You’re cautious about market cycles in aerospace. The aerospace industry is cyclical and can face challenges during economic downturns. If airlines delay purchases or maintenance, it could hurt GE Aerospace's revenue.
Does it pay a dividend?
Does GE Aerospace pay a dividend?
GE Aerospace pays an annual dividend of $0.32 per share, which is a relatively low yield of about 0.6% based on its recent stock price. This relatively modest dividend could be a sign that GE Aerospace is focusing on cash flow management and debt reduction following its recent restructuring.
ETFs with exposure to GE Aerospace
ETFs with exposure to GE Aerospace
There are quite a few major ETFs that have exposure to GE Aerospace, including S&P 500 funds and industrial and transportation ETFs.
| ETF Ticker | ETF Name | Exposure to GE | Assets Under Management | Expense Ratio |
|---|---|---|---|---|
| SPY | SPDR S&P 500 ETF Trust | 0.39% | $624B | 0.09% |
| IVV | iShares Core S&P 500 ETF | 0.39% | $577B | 0.03% |
| VOO | Vanguard S&P 500 ETF | 0.39% | $538B | 0.03% |
| XLI | Industrial Select Sector SPDR Fund | 4.45% | $22B | 0.10% |
Is GE Aerospace profitable?
Is GE Aerospace profitable?
Yes, GE Aerospace is profitable. The company reported total GAAP revenue of $9.8 billion for the third quarter of 2024, with operating profit of $1.8 billion. CEO H. Lawrence Culp Jr. reported that earnings rose 25% year over year for Q3. The company raised its earnings and cash guidance for the year due to its strong performance.
Will the stock split?
Will GE Aerospace stock split?
GE Aerospace stock isn't expected to announce a stock split anytime soon. A stock split is when a company makes more shares available, which lowers the price of each share but keeps the total value of what you own the same.
Before it split into three separate companies, GE underwent a 1-for-8 reverse stock split in 2021, which reduced the number of shares to boost the price per share.
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The bottom line
The bottom line on investing in GE Aerospace
GE Aerospace is doing well, especially now that air travel is bouncing back after the pandemic. GE Aerospace's bread and butter is making jet engines. With more flights happening, airlines need these engines and the services that go with them. If you're interested in long-term growth and believe in the future of aviation, investing in GE Aerospace stock might be a fit for you.
Investing in GE Aerospace FAQs
Is GE Aerospace a good investment?
That depends on your own strategy and preferences. GE Aerospace could be a good investment if you believe in the long-term growth of the aviation industry.
Is GE Aerospace publicly traded?
Yes, GE Aerospace is now traded under General Electric's previous stock ticker, GE.
Can I invest in GE?
Yes, but the original General Electric no longer exists, as the company recently split into three different companies. To invest in GE, you'd need to invest in GE Aerospace, GE Healthcare, or GE Vernova.
What is the ticker for GE Aerospace?
GE Aerospace trades under the ticker NYSE: GE.
