Buy or Sell GE Stock Ahead of Its Upcoming Earnings?
GE Aerospace (NYSE:GE) is scheduled to release its earnings report on Thursday, July 17, 2025. This upcoming announcement is a key event for investors, especially those employing an event-driven trading strategy.
Historically, GE stock has shown a tendency for positive one-day returns following its earnings reports. Over the past five years, GE's stock has seen positive returns on the day after earnings in 60% of instances. The median positive return during this period was 5.1%, with a maximum one-day positive return of 8.3%.
For the upcoming report, consensus estimates project earnings of $1.40 per share on sales of $9.51 billion. These figures represent an increase compared to the year-ago quarter, when GE reported earnings of $1.20 per share on sales of $8.22 billion.
While the actual results compared to consensus estimates will be a major determinant of stock movement, understanding historical patterns can provide an edge for event-driven traders. There are two primary approaches to consider:
From a fundamental perspective, GE currently has a market capitalization of approximately $283 billion. Over the last twelve months, the company generated $40 billion in revenue, achieving operational profitability with $7.5 billion in operating profits and a net income of $7.0 billion.
Now, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see – What's Happening With SBET Stock?
See earnings reaction history of all stocks
GE Aerospace's Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
Additional data for observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
GE 1D, 5D, and 21D Post Earnings Return
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves "long" for the next 5 days if 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
GE Correlation Between 1D, 5D and 21D Historical Returns
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors. Separately, if you want upside with a smoother ride than an individual stock like GE Aerospace, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.
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