With a market cap of $334 billion, GE Aerospace (GE) is a global aerospace company that designs and manufactures commercial and defense aircraft engines, integrated engine components, electric power systems, and aviation technologies. It operates through its Commercial Engines & Services and Defense & Propulsion Technologies segments, serving customers across the United States, Europe, Asia, the Middle East, Africa, and the Americas.
Shares of the Evendale, Ohio-based company have lagged behind the broader market over the past 52 weeks. GE stock has risen 5.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.8%. Moreover, shares of the company are up 4.9% on a YTD basis, compared to SPX’s 7.8% gain.
Focusing more closely, shares of the engine maker have underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 6.6% return over the past 52 weeks.
GE Aerospace shares fell 3.7% on Oct. 20 despite raising its 2026 adjusted EPS forecast to $8 - $8.10, as its implied Q4 EPS of $1.87 - $1.97 fell short of the analyst consensus. The weaker Q4 outlook reflected concerns that earnings and operating profit could come in about 6% and 5% below Wall Street expectations, respectively, even though Q3 2026 adjusted EPS of $2.25 beat the estimate and commercial engines and services revenue grew 21% to $10.34 billion.
Adding to pressure, GE expected increased GE9X engine deliveries for Boeing’s delayed 777X to create an additional $300 million profit headwind in 2027, while prolonged high fuel prices could eventually reduce airline flying and demand for engine repairs and spare parts.
For the fiscal year ending in December 2026, analysts expect GE Aerospace’s adjusted EPS to grow 28.1% year-over-year to $8.16. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” three “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, with 17 “Strong Buy” ratings on the stock.
On Oct. 23, Bernstein cut its GE Aerospace price target to $376 while maintaining an “Outperform” rating.
The mean price target of $378.36 represents a premium of 17.1% to GE's current levels. The Street-high price target of $425, implying a potential upside of 31.5% from the current price levels.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.