GE Is 'No Longer a Good Investment': Analyst
General Electric's* quarterly earnings topped Wall Street expectations Friday, as it kept costs in line despite sluggish demand for jet engines, railroad locomotives and other heavy equipment. So should investors be investing in the stock going forward? Dilip Sarangan, research analyst at Frost & Sullivan, shared his analysis.
“Traditionally, it used to be a good investment because of the dividends. But now with what’s been going on in the past 18 months or so, it’s no longer a good investment, nor is it going to be one of the stocks that will grow,” Sarangan told CNBC.
“Compared to a lot of the other Dow components, they’re definitely stinking it up.”
Meanwhile, Sarangan said GE’s energy and industrial sectors are performing well, and the firm's decision to sell NBC Universal and GE Security was a good idea.
“Comcast will definitely do a much better job [with NBC Universal] than GE,” he said.
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Sarangan does not own shares of GE.
*GE is the parent company of CNBC and CNBC.com.