When General Electric (GE) returned 46.28% in the first quarter of 2023, most investors missed out. The poorly run company did not change much to justify the rally. Fortunately, its outlook on aviation demand is welcome news for investors. Similarly, aerospace investors are betting that Boeing (BA) is on the rebound. BA stock gained 12.45% in Q1/2023.
In mid-March, GE nixed its stock awards for CEO Larry Culp. His pay will fall from $20 million to $14 million. The token drop is significant. It punishes executives who do not meet the company’s performance criteria.
GE has a poor leadership history it must shake off. Under ex-CEO Jeff Immelt, GE did not thrive. Immelt needed to manage long-term care deals that cost the company billions in financing.
GE Aerospace is one bright spot. It expects revenue to grow in the low double digits to the mid-teens through 2025. Its profit margin of around 20% is impressive. The unit benefits from Boeing and Airbus (OTCPK:EADSY) ordering more planes.
Investors should consider taking profits in BA and GE stock if they believe the market priced in the growth prospects through 2025. GE HealthCare (GEHC) traded in the $57 range but broke out from the $75 support line. Investors seeking exposure to the healthcare information services sector should look at GEHC.