General Electric shares gain for a second session in a row on Monday, the stock is now Barclays’ new top pick

Barclays analyst Scott Davis has made General Electrics stock his new Top Pick, as he considers the companys earnings forecasts as too low, Seeking Alpha reported on Monday.

General Electric shares closed higher for a second consecutive trading session on Monday. The stock edged up 0.15% ($0.04) to $27.61, with the intraday high and the intraday low being at $27.68 and $27.50 respectively. In the week ended on June 25th the shares of the industrial giant lost 4.93% of their market value compared to a week ago, which marked the first drop in the past four weeks and also the worst performance in at least a year. However, the stock has extended its advance to 0.84% so far during the current month, following a 5.55% slump in May. The latter has been a third consecutive monthly drop and also the steepest one since January. For the entire past year, General Electric shares gained 1.44%.

Barclays stated that the appointment of John Flannery as GEs new Chief Executive, “combined with a bottom-quartile valuation, significant cost-out program, better cash generation, accretion from BHI, and a top-decile dividend yield continue to make GE one of the most compelling stories in our universe.”

According to the firm, General Electrics cash deficit is “largely explainable given structural changes in the business and cyclical headwinds from new product introductions.”

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $32.00, with a high estimate of $36.00 and a low estimate of $24.00. The median estimate is a 15.90% surge compared to the closing price of $27.61 on June 26th.

The same media also reported that 8 out of 18 surveyed investment analysts had rated General Electric’s stock as “Buy”, while 6 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:

R1 – $27.63
R2 – $27.64
R3 (Range Resistance – Sell) – $27.66
R4 (Long Breakout) – $27.71
R5 (Breakout Target 1) – $27.77
R6 (Breakout Target 2) – $27.79

S1 – $27.59
S2 – $27.58
S3 (Range Support – Buy) – $27.56
S4 (Short Breakout) – $27.51
S5 (Breakout Target 1) – $27.45
S6 (Breakout Target 2) – $27.43

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $28.02
R1 – $28.55
R2 – $29.52
R3 – $30.05
R4 – $30.57

S1 – $27.05
S2 – $26.52
S3 – $25.55
S4 – $24.57