Should You Pick GE Stock At $200 After A Solid Q4 Beat?

Core Viewpoint - GE Aerospace reported strong Q4 results, exceeding revenue and earnings expectations, driven by better price realization and growth in commercial engines and services [1][3]. Financial Performance - Q4 revenue reached $9.9 billion, a 16$7.65 billion, and defense and propulsion technologies sales increasing 4% to $2.52 billion [3]. - Adjusted earnings per share were$1.32, reflecting a 103% year-over-year rise, with adjusted operating margin improving by 450 basis points to 20.1% [3]. Market Outlook - GE's total orders surged 46% year-over-year to $15.5 billion, indicating strong demand, and the company expects revenue growth in low double-digits for 2025 [4]. - Adjusted earnings are projected to be between$5.10 and $5.45 per share for 2025, compared to$4.60 last year [4]. Stock Performance - GE stock surged 9% following the Q4 results announcement, with a notable return of 94% since the beginning of 2024, significantly outperforming the S&P 500, which is up 28% [2][5]. - Over the past four years, GE stock has shown volatility with annual returns of 10% in 2021, -11% in 2022, 94% in 2023, and 65% in 2024 [5]. Strategic Initiatives - The company plans to spend $7 billion on share repurchases and has announced a 30% increase in its dividend, pending board approval [4]. - GE has undergone significant restructuring, separating its healthcare and energy businesses, which has led to increased investor optimism focused on aviation technology [2].