Last Updated: 12 Nov 2024
Executive Summary
GE HealthCare Technologies Inc. (GEHC) is a leading provider of medical technology, pharmaceutical diagnostics, and digital solutions. The company has a strong financial position with a market capitalization of $39.26 billion and an EBITDA of $3.57 billion. GEHC's fundamentals are solid with a trailing P/E ratio of 23.55 and a forward P/E ratio of 18.66. The company's technical analysis suggests that it is in a bullish trend, with a 50-day moving average of $88.9 and a 200-day moving average of $84.48. Short-term, GEHC is expected to continue its upward trend, while long-term, the company is well-positioned for growth. Analyst recommendations are overwhelmingly positive, with 4 strong buy ratings, 8 buy ratings, and 7 hold ratings.
Company Overview
GE HealthCare Technologies Inc. is a spin-off from General Electric Company. The company was founded in 2023 and is headquartered in Chicago, Illinois. GEHC has a global presence with operations in over 160 countries. The company's products and services are used by hospitals, clinics, and other healthcare providers to diagnose and treat patients.
Fundamental Analysis
GE HealthCare Technologies Inc. has a strong financial position. The company's revenue for the trailing twelve months was $19.56 billion, and its net income was $1.67 billion. GEHC's gross profit margin is 36.7%, and its operating margin is 16.1%. The company's return on assets is 5.64%, and its return on equity is 21.8%.
GEHC's fundamentals are expected to improve in the coming years. The company is expected to grow its revenue by 5% in 2023 and by 6% in 2024. GEHC's net income is expected to grow by 10% in 2023 and by 12% in 2024.
Technical Analysis
GE HealthCare Technologies Inc.'s stock price has been in a bullish trend since its IPO in January 2023. The stock price has risen from $66.29 in March 2023 to $85.39 as of the latest close.
The stock's 50-day moving average is $88.9, and its 200-day moving average is $84.48. The stock is currently trading above both of its moving averages, which is a bullish sign.
The stock's relative strength index (RSI) is 62.7, which is in the overbought range. This suggests that the stock may be due for a pullback. However, the stock's moving averages are still in a bullish trend, so a pullback is likely to be temporary.
Short Term Outlook
In the short term, GE HealthCare Technologies Inc.'s stock price is expected to continue its upward trend. The stock is trading above its moving averages and its RSI is in the overbought range. This suggests that the stock is likely to continue to rise in the short term.
Long Term Outlook
In the long term, GE HealthCare Technologies Inc. is well-positioned for growth. The company has a strong financial position, a solid product portfolio, and a global presence. GEHC is expected to benefit from the growing demand for healthcare services around the world.
Analyst Recommendations
Analyst recommendations for GE HealthCare Technologies Inc. are overwhelmingly positive. Of the 19 analysts who cover the stock, 4 have a strong buy rating, 8 have a buy rating, and 7 have a hold rating. The average analyst target price for the stock is $96.34, which is 12.7% above the current price.
