People are naturally drawn to novelty – the new.
That’s partly why AI has been so blazing hot since the release of ChatGPT – it’s new, it’s exciting.
And of course, this whole effect is amplified by the eyeball-chasing media.
This isn’t to denigrate AI stocks at all…
But to point out that there may be opportunities “beneath the surface” – even huge ones – that most people just aren’t seeing.
Today’s stock pick is a case in point.
It’s a huge stock with a market cap of over $100 billion…
It’s advanced over 75% this year to reach a 5-year high…
And it’s still only trading at a P/E ratio of under 13x.
With stats like that, you would think you’d read about it a bit more in the financial news…
But that hasn’t been the case at all.
Fortunately, the media’s selective bias can be your opportunity…
“Peeing Car” At Center Of $11.7 Trillion Energy Revolution
Goldman Sachs says this will be 10X bigger than the electric vehicle market. Elon Musk terrified. Tesla could be fInished. But early investors could make a fortune.
Click Here to see the full story
General Electric Company (GE)
You don’t need an introduction to GE – it’s been a household name for decades. But it’s also a bit of a complex play, with the conglomerate in the process of splitting into different companies, each focusing on energy, aviation, and healthcare, respectively. And this is after having shed various loss-making assets such as locomotives and lighting.
In January this year, the company already spun off its healthcare division into its own independent entity – GE HealthCare Technologies, now trading on the NASDAQ. The company is planning to spin off its GE Verona – its renewable-energy division – sometime in early 2024.
The healthcare spinoff has been highly positive for GE, with its stock having advanced over 75% this year. And the spinoff of its renewable-energy division is also expected to be so, because it would leave GE with the “crown jewel” of its current business – aerospace.
And right now, GE’s biggest aerospace rival – RTX (formerly Raytheon) – is struggling with a huge engine issue which is likely to result in 350 Airbus planes grounded till 2026. This recall could result in a up to $7 billion hit to RTX’s earnings.
This is positive for GE’s stock, which currently trades at a P/E ratio of 12.6x – well below RTX’s 19.9x (even with RTX’s stock falling throughout the year).
As such, this could be a great window of opportunity to get into GE stock before it spins off its energy division and as it continues to benefit from the RTX fallout.
To your wealth,
Felix @ Ace of Investing