These two look extra risky after big gains

Article Excerpt

On April 2, 2024, the old General Electric spun off its power equipment business as GE Vernova. Investors received one share of the new firm for every four GE shares they held. Each stock is up sharply since the split, but both are now very expensive in relation to their earnings. The possibility of U.S. tariffs on imports from Canada and Mexico also add to their risk. GENERAL ELECTRIC CO. $199 is a hold. The company (New York symbol GE; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 1.1 billion; Market cap: $218.9 billion; Price-to-sales ratio: 5.5; Dividend yield: 0.7%; TSINetwork Rating: Average; www.geaerospace.com) now operates as GE Aerospace. It mainly makes and services jet engines and aircraft electronics. It has 44,000 commercial and 26,000 military aircraft engines in service worldwide. As a standalone business (excluding GE Vernova), GE Aerospace’s revenue in the fourth quarter of 2024 rose 15.6%, to $9.88 billion from $8.55 billion a year earlier. That’s mainly because rising air travel volumes continues to…