The factors in favour of a rise in the General Electric share price:
It is very interesting to carry out a complete swot analysis to determine a company's strengths and weaknesses before starting to trade its share on the stock market. This will enable you to determine more precisely the growth potential of the company and thus the direction that the trend in the price of its assets is most likely to follow in the more or less long term. Let's start here by detailing together the strengths of this value with the strengths of the General Electric group.
One of the greatest strengths of the General Electric group is, of course, the diversification of its product portfolio. In fact, the group designs and manufactures products in a total of eight different business sectors. These include General Electric Capital, Aviation, Power and Water, Oil and Gas, Health Care, Appliances and Lighting, Energy Management and Transportation. General Electric's business diversification also extends to the markets in which it sells its products across all lines of business.
We also appreciate the good visibility of the Group's order book, which ensures its profitability over several months and even several years. General Electric often enters into long-term contracts with its main customers.
Another strong point of General Electric's business is the group's revenue stream. Indeed, in addition to an excellent diversification of its product range, General Electric benefits from an excellent balance of revenues from its various activities. As a result, it is less exposed to commercial risk since it is not dependent on just one or a few activities and can offset possible losses in any of its subsidiaries. However, the General Electric Capital subsidiary remains the one that generates the largest share of profits with no less than 25% of total revenues, as do the water, aviation and oil and gas subsidiaries, which each generate between 10 and 20% of the Group's revenues.
Finally, we can also highlight the importance of the General Electric group's investments in research and development. The group has in fact created a real R&D pole called GE Global Research which benefits from numerous technologies enabling it to innovate in all the sectors in which it operates and in cutting-edge fields such as electronics, metallurgy, fluid mechanics and many others. The group is thus able to create increasingly innovative products and thus meet the new needs of its customers while maintaining its leadership in its preferred fields.