There is a famous quote – If all you ever did was buy high-quality stocks on the 200-week moving average, you would beat the S&P 500 by a large margin over time. The problem is that few human beings have that kind of discipline.
Let us test this strategy in 2025.
Investment Idea: GE Aerospace GE
GE Aerospace is a world-leading provider of jet and turboprop engines and integrated systems for commercial, military, business, and general aviation aircraft. It’s a simple, clean business. GE Aerospace was spun off from General Electric in April 2024 to become an independent publicly traded company.
The world has become smaller, and more people are flying than ever before. This means there is more demand for air travel and aircraft. GE makes plane engines and does routine maintenance. There is not much competition, and the company is very profitable. The company’s earnings rose 25% year over year last quarter. The company also raised its earnings and cash guidance for the year due to its strong performance.
The margin will improve substantially as travel picks up due to high-margin service demand. A year ago, GE’s aerospace business earned an operating profit margin of 18.8% on its sales. Last quarter, that number improved to 20.3%. Also, Trump’s victory is good for American companies. It means GE Aerospace is not only a defensive play but a growth stock too.
GE is right at 200 dma, and that makes the stock a buy right now
If you are looking at a slow and steady return, GE Aerospace at its current market price, looks good for a 20% return.
Chart Source: Finviz.com
Please do your own due diligence before trading. Nothing here or in the newsletters constitutes financial advice. These are just my views based on my experience.
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