Why GE Aerospace Is Stronger Than the Stock Chart Looks

GE Aerospace’s selloff is driven by macro fear, not business deterioration. Fundamentals—margins, backlog, defense growth, and long‑term EPS trajectory—remain strong. Valuation is rich, but Street conviction is high, and execution under Culp continues to impress.

• Stock dropped 23% due to Middle East conflict + lower air‑travel growth outlook, not fundamentals.

• Q1 commercial aerospace margin jumped to 26.4%, up 7+ points YoY.

• Backlog is massive: $210B total, $170B services, rising fast.

• Dominant 75% market share in single‑aisle engines; strong twin‑aisle + defense (up 19% YoY).

• R&D near $3B (≈7% of sales) supports long‑term engine leadership.

• Valuation rich at ~40× forward earnings, but Street expects 15%+ EPS growth for years.

• 85% of analysts rate it Buy; avg PT $347; potential $350–$400 in coming years.

• Technicals weak (below 200‑day), but possible double‑bottom forming.

  -Chart from Barron`s