Healthcare
from24/7 Wall St.
1 day agoGE HealthCare Just Crashed 13% on a Guidance Cut. Here's the Case for Buying the Dip
GE HealthCare's stock is undervalued with a potential upside of 50.8% despite recent profit guidance cuts.
Our conversation reminded me why GE was revered for much of its 133-year history. This was the company that Thomas Edison built, with a management system so potent that investors once believed it could be applied to light bulbs, nuclear reactors, Saturday Night Live and its opaque GE Capital finance arm with equal results. At its peak in 2000, GE's market cap hovered around $600 billion, more than $1 trillion in today's dollars.
On Jan. 4, 2023, GE HealthCare Technologies (No. 219 on the Fortune 500) debuted as a standalone public company on the Nasdaq exchange. Since then, its stock is up almost 50%. It was the first of three businesses to be spun off in the breakup of General Electric, the conglomerate founded on the inventions of Thomas Edison that went public in 1892 and became one of the original 12 components of the Dow Jones Industrial Average four years later.