What's Going On With General Electric (GE) Stock?

Zinger Key Points
  • General Electric shares have climbed 6% this month.
  • Investors are anticipating benefits from Trump's proposed increases in defense spending and infrastructure investment.
General Electric shares have climbed 6% this month. Investors are anticipating benefits from Trump's proposed increases in defense spending and infrastructure investment.

General Aerospace GE shares have climbed this month amid overall market strength following Donald Trump's presidential election win, as investors foresee potential policy changes that could benefit the industrial conglomerate's diverse portfolio, particularly in aviation, defense and energy.

Trump's proposed increase in defense spending could create growth opportunities for GE's aerospace and defense segments, where the company manufactures engines and advanced technologies for both military and commercial aircraft.

A boost in defense budgets could lead to new contracts and expanded production, enhancing revenues for GE's aviation division, one of its most profitable arms.

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What To Know: Trump's focus on U.S. infrastructure investment, including modernizing the country's transportation, energy and digital networks, aligns well with GE's capabilities. During his campaign, Trump proposed a substantial infrastructure spending plan targeting upgrades to roads, bridges and electrical grids.

If implemented, this spending could fuel demand for GE's power generation and renewable energy technologies, as well as its industrial automation solutions.

GE's experience in power equipment, renewable energy solutions, and grid modernization positions the company to capitalize on federal investments aimed at upgrading and securing the country's energy infrastructure.

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What Else: Additionally, Trump's stance on reducing regulatory hurdles for industries like manufacturing and energy could ease operational challenges for GE.

Regulatory rollbacks in environmental compliance and energy production could lower costs for GE's energy businesses, making it easier to develop and deploy gas turbines and other energy solutions with fewer restrictions and associated costs.

Furthermore, Trump's pro-business tax policies could result in financial benefits for GE, enabling the company to retain more earnings for reinvestment in R&D, technological innovation and potential debt reduction.

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How To Buy GE Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in GE’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, GE has a 52-week high of $194.80 and a 52-week low of $92.17.

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