From Nasdaq: 2025-05-27 22:32:00

GE Aerospace stock has surged by almost 40% this year, outperforming the S&P 500. With concerns about its high valuation, trading at nearly 60 times free cash flow, investors question if a correction is imminent. GE Aerospace’s restructuring and strong demand for aftermarket services contribute to its high valuation.

While GE Aerospace’s revenue growth remains strong and margin expansion is significant, its valuation compared to companies like Nvidia and Microsoft seems stretched. Factors like aviation volumes and economic growth could continue to drive GE’s performance. Investors must weigh potential returns against risks when considering GE as an investment.

Investors should consider the risk-reward trade-offs of investing in GE compared to alternatives like cash or broad market ETFs. The Trefis High Quality Portfolio, with a history of outperforming the S&P 500, offers a diversified approach to reduce risk. Using anchor assets like Nvidia and Microsoft can help assess GE’s expected return and downside risk.



Read more at Nasdaq: 40% Downside For GE Aerospace?