GE Stock Dips, but We See No Change to the Outlook

Key Morningstar Metrics for GE Aerospace

• Fair Value Estimate: $266
• Morningstar Rating: ★★★
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: Medium

GE Stock Update

Shares of GE Aerospace GE traded down roughly 5% by midday on Aug. 13 for no apparent or fundamentally driven reason, while widespread profit taking and some sector rotation drove large cap growth stocks down about 1% overall and small value stocks up nearly 2% in a flat-ish US market.

Bears say: Some headlines about onshoring manufacture of home appliances to the US at the cost of $3 billion were tagged to the trading symbol GE, though the GE Appliances business was acquired by Chinese manufacturer Haier in 2016.

The bottom line: We reaffirm our $266 fair value estimate for wide-moat GE Aerospace’s shares, and despite the somewhat dramatic one-day dip in the stock price, don’t believe anything affecting the firm’s prospects has changed.

• Investors in GE Aerospace have enjoyed more than 60% appreciation in the stock so far in 2025, and our fair value estimate has risen 37% over several occasions, driven mostly by increased confidence in our forecast for continued service margin expansion.
• The shares trade within cents of our fair value estimate, and we anticipate that the firm will continue to enhance its dividend and share repurchase programs over time.