General Electric is one of the oldest and biggest companies in the world that delivers a range of products and services in the following industries: aviation, power, renewable energy, healthcare, digital industry, additive manufacturing, and venture capital & finance. Founded in 1892, General Electric has been growing to become a solid and strong company, but since the 2008 economic crisis, it has been dealing with a heavy debt load and a shaky balance sheet for more than a decade.
This has lead to a long downward trend in General Electric’s share price. During 2020, the GE stock was trading at its lowest levels since the mid-90s (not including the one-time drop at the time of the economic global recession in 2008). However, the company has made some crucial changes in the last years and as such, some analysts and investors believe General Electric is currently undervalued and is an attractive long term investment right now.
In this guide, we’ll analyze General Electric’s historical share price performance, outline the reasons why GE is still a good buy, and find the best brokers in the UK that offer you to buy General Electric shares.
- 1 How to Buy General Electric Shares UK – with 0% Commission
- 2 Step 2: Research General Electric Shares
- 3 What is General Electric?
- 4 How Much Are General Electric Shares Worth? General Electric Share Price History
- 5 General Electric Shares Dividend Information
- 6 Should I Buy General Electric Shares?
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Buy General Electric Shares
- 9 General Electric Shares: Buy or Sell?
- 10 The Verdict
- 11 eToro – Buy General Electric Shares With No Commission
- 12 FAQs
In order to buy shares of General Electric, you need to find a UK stockbroker that gives you access to the US stock market. But while finding a broker in the UK that allows you to buy GE shares is easy, you might want to make in-depth research to find a brokerage firm that not only gives you access to General Electric, but also provides a cost-effective trading platform, advanced trading tools, and fairly simple registration process.
To help you get started, below you’ll find two of our recommended UK stockbrokers that offers you to buy and sell General Electric shares in the UK.
1. eToro – Buy General Electric Shares with Zero Commission
If you are a UK investor looking for the most user-friendly trading platform to buy General Electric, eToro is the ideal broker for you. This broker that was launched in 2006 and is one of the most popular platforms in the world, offering thousands of shares from the US, UK, Europe, and Asia. eToro is also one of the few brokers in the trading industry that offers users to buy shares outright or via CFDs.
As such, you’ll be able to trade shares with a low margin requirement of just 20% of the total amount of the position. For example, if you want to buy shares of GE with an amount of $1000, you will have to invest only $200 as you can use the leverage of 5:1 on shares. Another key point trading CFDs at eToro is the option to short sell stocks with the same margin requirement and without the hassle of opening a different margin account.
eToro is widely known for its social trading features, which makes it one of the most unique brokers in the market. On this platform, investors can interact with other members, view market insights, and copy the trades of other investors by using the CopyTrade tool. When it comes to safety, eToro is heavily regulated by top agencies including the UK’s FCA. More than that, investors are covered by the FSCS, which means that if the broker collapse, your funds would be safeguarded up to the first £85,000.
- Commission-free share trading platform
- You’ll get access to shares, ETFs, currency pairs, commodities, indices and cryptocurrencies
- Allows you to buy shares outright or CFDs
- Supports fractional trading
- Social trading platform
- Accepts a wide range of payment methods, including PayPal
- User-friendly web platform and mobile trading app
- Regulated by the FCA
- Limited technical analysis charting package and trading tools for advanced traders
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Skilling – Trusted UK CFD Platform with Competitive Spreads
Skilling is Scandinavian forex and CFD brokerage firm that offers investors to trade on different assets via a range of three trading platforms. The broker, which is regulated by CySEC and the FSA, offers more than 700 shares from top stock exchanges including shares of Tesla Motors, Apple, Facebook, and General Electric.
Besides shares trading, investors at Skilling get access to FX currency pairs, commodities, indices, and cryptocurrencies. Crucially, investors in the UK can buy and sell shares with a leverage ratio of 5:1 if opting for a retail client account. For those who have previous trading experience and are able to claim a professional trading level, Skilling offers a leverage ratio of 10:1 on shares.
Going into the specifics of trading GE shares on Skilling, the broker maintains an average spread of 0.0235 and an overnight long and short interest rate of 0.0007 and 0.0006 respectively. Skilling is also considered by many as a great platform for day trading activity. This can be attributed to the range of trading platforms and the extensive range of features and tools that include a market sentiment tool, an algorithmic trading program, and a great charting package. Overall, Skilling is one of the best brokers for high trading activity in the UK that offers General Electric shares.
- More than 700 share CFDs, including General Electric
- Commission-free share trading with tight spreads
- Range of three trading platform
- Supports algorithmic trading
- Supports the MetaTrader 4
- User-friendly mobile app for iOS and Android
- Does not support ETF trading
75% of retail investor accounts lose money when trading CFDs with this provider.
Following the Covid-19 vaccine announcement, the optimism in the stock markets seems well-founded. Companies like General Electric could be the big gainers of a rebound in stock prices, and investors who have been waiting years for General Electric’s share price to rise again are anxiously waiting for a strong signal to buy its shares. But as there’s still risk involved in buying shares of GE, it’s important that you analyze the stock and the company’s fundamentals before risking your capital.
With that in mind, let’s take a closer look at the history of General Electric’s share, the company’s market cap and earnings data, its recent performance, and the key strengths of the company.
What is General Electric?
General Electric is an American industrial company that was founded way back in 1892 by Thomas Alva Edison, who has been one of the most notable inventors in the United States and worldwide. GE is a highly diversified company with operations in different segments that include electrical and electronic equipment, renewable energy, aircraft engines, power, healthcare, and financial services.
General Electric is a massive global company that has been a Fortune 500 member for consecutive 21 years. As a matter of fact, the US company is currently ranked 33 on the list with a market cap of more than £88bn. In 2019, the company employed around 205,000 people worldwide in 194 offices across 63 countries.
But although General Electric is one of the largest businesses in the world, the GE share price is trading on a long downward trend for almost two decades, and at present, shares of the multinational conglomerate trade at the lowest levels since the mid-90s of the previous century.
The problems for GE have started around the time of the 2008 financial crisis Due to a series of problems and events, GE’s share price dropped by more than 60% since 2016. One of the biggest concerns was GE’s massive debt load caused by bad acquisitions and decisions. Eventually, the company’s net debt reached a peak of $108.575bn in 2018.
Then, General Electric made some serious changes in 2018. First, GE Healthcare sold its IT business to Veritas Capital for more than $1bn. It also announced a 50% dividend cut, and changed its board membership, including the replacement of the company’s CEO. These steps helped General Electric’s stock price to steadily rise in 2019 and early 2020.
In 2020, the GE share price dropped in March due to the Covid-19 pandemic. However, since late September, the share has been on the rise, gaining nearly 70%.
General Electric Share Fundamentals – Market Cap, P/E Ratio and EPS
As of November 2020, General Electric has a market capitalization of $88b. This makes the company among the 100 biggest companies in the world in terms of market cap. GE’s Price per Earnings (PE) ratio currently stands at 28.61, which is higher than the industry average.
GE reported an EPS of $0.06 for its third fiscal quarter of 2020. For the trailing twelve months, GE’s Earnings Per Share (EPS) stands at $0.35, an increase from -$0.62 from November 2019.
At the time of writing, General Electric still pays quarterly dividends to shareholders of common stocks. In 2019, the company slashed the quarterly dividend to one penny per share, and consequently, its current trailing twelve months (TTM) dividend payout for General Electric is $0.04, which represents an annual yield of 0.41%. The main reason for General Electric to keep paying dividends is symbolic as well as it wishes to prevent any complications when scrapping dividends and restarting them.
Looking forward, it is very likely that GE will increase its dividend payment in the upcoming year.
While General Electric was facing headwinds for several years, 2019 was a good year for GE. In 2020, General Electric’s share price was trading fairly calmly despite the turmoil in the market caused by the Covid-19 pandemic. Consequently, many analysts now believe it is a good time to buy shares of this massive industrial company. With that in mind, let’s take a close look at some of the reasons why General Electric shares are worth buying right now.
GE Dominates the Aircraft Engines and Servicing Market
GE’s aviation segment, which makes jet engines, is the largest US-Based aircraft engine supplier and the second-largest manufacturer of commercial aircraft engines. Overall, there are a few dominant players in the market that include GE, Rolls Royce, and Pratt & Whitney. From the list, GE has a market share of 59% of the world’s market and generates a 20% operating margin on aircraft engines and services.
An Improvement of Balance Sheet
The 2008 financial crisis hit General Electric very hard and the company is somehow still trying to recover from the sharp fall it has experienced. Since the crisis, General Electric has been mostly selling assets to reduce its debts, and improve its balance sheet. As such, it has sold a number of businesses, and a portion of its healthcare business. And finally now, GE has succeeded in fixing the balance sheet and its cash flow though it has some work ahead of it to fully repair its finances.
This year, it has announced its $2 billion in cost-cutting and $3 billion in cash-preserving actions. GE also managed to lower debt by $9.1 billion from the start of the year.
Last week, GE announced a health-care diagnostics acquisition of Prismatic Sensors, a Swedish start-up specializing in photon-counting detectors. This was the first acquisition made by the new CEO, Larry Culp, and signals that GE currently has a more stable balance sheet.
First X-Ray Artificial Intelligence Technology
Recently, GE Healthcare announced the release of its first X-ray Artificial Intelligence technology to assist doctors when ventilating Covid-19 patients. This technology could be critical in the case the Covid-19 situation escalates, or in any other case doctors might have to find solutions to assist patients in breathing. According to Dr. Amit Gupta, Assistant Professor of Radiology at Case Western Reserve University, the X-Ray AI technology is a ‘game-changer’ and can help patients get a quick treatment without having to wait for a professional radiologist to examine X-ray scans.
Step 3: Open an Account and Deposit Funds
Once you have gone through the process of making research on General Electric and you still want to buy its shares, the next step is to open an online investment account with your chosen broker. To help you get started, we are going to show you the account creation process via eToro.
In the first step, simply navigate to eToro’s website and click on the Join Now button. You will then see a sign-up form where you need to insert your email address, username, and password.
Now, you will be asked to complete the signup process by submitting your personal information and verify your identity by uploading a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill. Once you get an email from eToro’s group that approves your account, you can then fund your account with a minimum of £140 by using one of these payment methods:
- Debit Card
- Credit Card
- UK Bank Transfer
Once the funds have reached their destination, you are ready to buy General Electric shares via eToro. To do that, enter ‘General Electric’ or ‘GE’ into the search box at the top of the page, and click on the first result that pops up (as per the screenshot below).
Now, you will be channeled to GE’s instrument page. On this page, you can analyze the General Electric share price by viewing the feed from Twitter, see the company’s stats, analyze the stock on a chart, and use the research section that includes market sentiment tool, analyst opinion, and more. Whenever you are ready to make a transaction, click on the Buy button.
Then you simply set the number of shares you want to buy and the leverage, stop loss, and take profit if you want to trade General Electric share CFDs. Once you’re ready, click ‘set order’ and you’ll have invested in General Electric shares!
For more than a decade, GE’s financial stability was uncertain. And to be honest, there are more challenges ahead for the company’s management. The good news for investors is that GE’s management is working hard to reduce debt and finally, good results are coming out. So, in the eyes of an investor, there’s more upside than downside at these levels for GE’s share price.
GE is a diversified company with strong revenue and dominancy in various industries. Moreover, analysts and rating agencies predict that the future outlook is positive. Evidently, analysts estimate that by 2024, GE will generate around $99bn in revenue and $13.7 billion in EBITDA. If the company succeeds to achieve these numbers, there’s an upside potential of 65% from current levels.
General Electric shares bounced back after the Covid-19 sell-off, and since late September gained over 60% with strong bullish momentum. While GE’s balance sheet is still a concern for investors, the fact that it has reduced the debt to equity (DE) ratio to 2.39 from the peak of 3.34 in 2018 is a reason for optimism for existing and new investors. Overall, we think General Electric is a buy right now with an upside growth potential of around 15%-20% in the next year.
If you ready to buy General Electric shares, simply click the link below to get started!
67% of retail investor accounts lose money when trading CFDs with this provider.
Who is the chief executive of General Electric?
Henry Lawrence Culp, Jr. is the CEO of General Electric since 2018.
What stock exchange is General Electric listed on?
General Electric is listed on the New York Exchange under the ticker symbol GE. It is a constitute of the S&P 500 index.
Does Berkshire Hathaway own shares of General Electric?
No, according to the latest report from the SEC, Berkshire Hathaway does not currently own General Electric shares.
General Electric went public in 1896, which makes it one of the oldest companies in the New York stock exchange. It is also one of the 12 companies that were originally listed on the Dow Jones Industrial Average index.
Can I invest in General Electric via an ISA or SIPP?
Yes, you can. All you need to do is to find a brokerage firm that allows you to purchase US shares like General Electric via ISA or SIPP investment accounts.