2 days ago
GE Stock To $500?
GE Aerospace (NYSE: GE) has performed exceptionally, with the stock climbing from roughly $100 in early 2024 to about $270 today—a striking 2.7x jump. This advance reflects the company's pivot to a focused aerospace pure-play following its strategic breakup, the strength of its high-margin services business, substantial debt reduction, and solid execution amid strong demand for its LEAP engines.
So, what could power another 2x move that takes the stock beyond $500? We outline the potential drivers below. For investors seeking lower volatility than a single stock, the High Quality Portfolio is an appealing alternative. Since inception, this portfolio has delivered over 91% in returns, handily beating its blended benchmark (S&P 500, Russell, and S&P mid-cap indexes). Also, see – Buy IBM Stock At $240?
Growth Drivers for 2x Upside to $500+
Several factors could help GE Aerospace double again from here:
Valuation Scenarios
While GE's guidance calls for $8.40 in adjusted EPS by 2028, the company appears positioned to exceed that, potentially reaching $9.20 per share (up from $4.60 in 2024), per our estimate. Using our EPS outlook, three scenarios emerge:
The optimistic case would be underpinned by durable high growth, leadership in next-gen technologies, and continued mix-led expansion in high-margin services.
But Of Course There Are Risks
Key risks that could derail a move to $500+ include:
The Verdict
GE Aerospace is a compelling growth story with clear catalysts. The transition to a focused aerospace leader, paired with strong positions in equipment and services, supports sustained expansion. A path to $9.20 in EPS looks achievable given current momentum and investment plans.
That said, the current 48x multiple leaves little margin for error. A run to $500+ is possible, but investors should balance the upside with the risks. Also, see our downside case analysis discussing potential headwinds and valuation compression.
Remember, owning a single (or a few) stocks carries meaningful risk. Consider the Trefis High Quality (HQ) Portfolio, a 30-stock collection that has comfortably outperformed the S&P 500 over the last 4-year period. Why? As a group, HQ names have delivered better returns with less volatility than the benchmark—see the HQ Portfolio performance metrics.
