General Electric’s CEO Larry Culp announced that after several struggling years, Company transformation is accelerating. When Culp took charge of GE in 2018, the company was in real trouble.

The turnaround under Culp administration will be a gradual process and transformation has been pushed back due to outbreak of Coronavirus early this year, just as GE stock starts rising, the pandemic pushed them back.

General Electric mostly deals in aviation and aircraft engine and as we know 2020 is not a good year for the aviation industry.

The GE stock hit highs and low to very low in the last twenty years and now CEO want to keep the pattern stable. This can be done only if GE share price increase and pass the $10 benchmark and remain steady as well.There is no reason that GE can`t get there in 2021 if not possible in 2020. GE stock hit $13.26 at once so Culp can reach to that milestone again in 2021.

GE still attract investors for its valuation and it has a price-earnings ratio of 21.08 which is quite reasonable in the current scenario.

It is an achievement for a struggling company like General Electric to beat the analyst’s estimates during the global pandemic. Investors usually do not expect massive earnings or revenue from a struggling company like GE. But GE avoided an outright loss in the third quarter of 2020 and announced earnings of 6 cents per share which is positive news for the investors.

The third quarter represents a 60% decline which is still better than the estimates and company also announce free cash flow of $514 million, beating the -$1.03 billion estimates of analysts.

Other than the aviation sector, the GE other business segments performed well. Quarterly revenue from power segment was $4.03 billion and from health care, the quarterly revenue was $4.57 billion. The energy segment revenue for the reported third quarter was $4.53 billion.

The recent quarterly results show that the new CEO planning is to turnaround the GE is working and prospects are looking positive.