GE Aerospace is the world's largest jet engine manufacturer with an unassailable installed base of 44,000+ engines generating 60%+ recurring aftermarket revenue. Four consecutive EPS beats confirm operational excellence post-spinoff. However, the stock is hitting 52-week highs with RSI at 73 (overbought), trading 8.5% above EMA20, and a forward PE of 42x leaves no margin of safety. Great business, wrong entry point — wait for pullback to EMA20 ($337).
GE Aerospace is the world's largest jet engine manufacturer, spun off from General Electric in April 2024 as a pure-play aerospace company. The company supplies engines for both commercial aviation (LEAP for 737 MAX/A320neo, GE9X for 777X, GEnx) and defense/propulsion (F110, T700 for military applications).
The business benefits from a massive installed base of 44,000+ engines generating recurring aftermarket revenue that accounts for over 60% of total revenue. Post-COVID aviation recovery combined with defense spending tailwinds create a dual growth engine. Revenue split is approximately 70% commercial aviation and 30% defense/propulsion technologies.
| Segment | Revenue | % Total | Description |
|---|---|---|---|
| Commercial Engines & Services | ~70% | 70% | LEAP (737 MAX, A320neo), GE9X (777X), GEnx engines + aftermarket services |
| Defense & Propulsion Technologies | ~30% | 30% | F110, T700 military engines, government/defense contracts |
| Metric | Value | Signal |
|---|---|---|
| Market Cap | $382.28B | Mega-Cap |
| Trailing P/E | 45.39x | Premium |
| Forward P/E | 42.12x | Expensive |
| PEG Ratio | 8.55 | Overvalued |
| EV/Revenue | 7.93x | High |
| EV/EBITDA | 34.69x | Rich |
| P/B Ratio | 21.14x | Premium |
| Book Value | $17.31 | |
| Dividend Yield | 0.53% | Token |
| Short Interest | 1.33% | Low |
| Quarter | EPS Actual | EPS Est. | Surprise | Revenue |
|---|---|---|---|---|
| Q1 2026 | $1.86 | $1.60 | +16.3% | - |
| Q4 2025 | $1.57 | $1.43 | +9.8% | - |
| Q3 2025 | $1.66 | $1.47 | +12.9% | - |
| Q2 2025 | $1.66 | $1.43 | +16.0% | - |
4/4 consecutive beats — strong execution post-spinoff — Next: July 2026 (est.)
| RSI (14) | 73.3 |
| EMA 20 | $337.08 |
| EMA 50 | $320.29 |
| EMA 200 | $298.06 |
| MACD | 14.700 |
| Signal | 12.060 |
| ATR (14) | $10.59 |
Strong bullish structure but overextended. Price hitting 52-week high ($369.25) with RSI at 73.3 (overbought). EMA20 ($337.08) > EMA50 ($320.29) > EMA200 ($298.06) — perfect alignment. However, price is 8.5% above EMA20 — a pullback is likely before a sustainable breakout. MACD bullish (14.70 vs signal 12.06). ATR $10.59 (2.9%) reflects elevated volatility. 50-day avg ($309.54) and 200-day avg ($306.20) well below, confirming strong trend but extended entry risk.
Outstanding business quality with dominant market position, but current entry carries elevated risk due to extreme valuation (42x FPE, 8.55 PEG), overbought technicals (RSI 73), and 8.5% extension from EMA20.
GE Aerospace is the world's dominant jet engine manufacturer with 4 consecutive EPS beats and powerful secular tailwinds from aviation recovery and defense spending. The stock is currently overextended at 52-week highs with RSI at 73 and 8.5% above EMA20. Wait for a pullback to the EMA20 ($337) zone for a favorable risk/reward entry targeting ATH breakout and the $400 psychological level.
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Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Always conduct your own research and consult a licensed financial advisor before making investment decisions.
Data sourced from DailyTickers Gateway, Yahoo Finance, SEC EDGAR, and public market data. Accuracy is not guaranteed.