GE: Zacks Upgrades Stock to ‘Strong Buy’ — But $362M Power Segment Settlement Still Weighs

Court: S.D. New York

Case: 1:17-cv-08457

GE Aerospace GE continues to gain investor attention after a strong performance streak and upward revisions to earnings estimates. Over the past month, shares have climbed 10.2%, significantly outpacing the broader market and its aerospace peers. Zacks has now ranked GE a #1 “Strong Buy” based on improving EPS projections — but a legacy legal settlement tied to overstated 2017 guidance still shadows the company’s valuation.

Key Upgrade Highlights

• Stock up +10.2% in the past month vs. +0.5% for S&P 500.
• EPS estimates for current quarter raised to $1.45 (+6.2% in last 30 days).
• FY2025 EPS forecast: $5.87 (+27.6% YoY); FY2026 forecast: $6.92 (+17.9% YoY).
• Revenue expected to hit $10.28B this quarter (+14.9% YoY).
• Last quarter: $10.15B revenue beat (+5.1%) and $1.66 EPS beat (+16.1%).
• Zacks Rank #1 (Strong Buy) driven by upward earnings revisions.
• GE’s valuation graded F, signaling premium pricing vs. peers.

But a $362.5 Million Investor Settlement Still Hangs Over GE

Timeline Overview

• October 20, 2017: GE cut its cash flow guidance; stock fell 7%.
• November 13, 2017: Announced 50% dividend cut; GE dropped 12.5%.
• January 16, 2018: Disclosed $6.2B insurance loss; shares sank another 13%.
• November 1, 2019: Investors filed a lawsuit alleging financial misrepresentation.
• January 2025: GE finalized $362.5M cash settlement with shareholders.

Allegations Include

• Overstating 2017 financial guidance tied to the underperformance of the Power segment.
• Failing to disclose long-term care insurance risks.
• Misleading investors about GE’s overall financial condition.
• Weak internal controls over financial reporting.

Investor Update

The $362.5 million cash settlement finalized in early 2025 ends years of litigation tied to GE’s 2017 financial disclosures. While the company has since refocused around its high-performing aerospace unit, reputational damage and prior governance issues continue to influence investor perception as the stock pushes toward new highs.

You can check more information about it and file for a payout HERE.