Is It Too Late to Buy GE Aerospace Stock?

GE Aerospace's Earnings Cycle

Investing in GE Aerospace is closely tied to the life cycle of airplane engines, particularly the LEAP engine, which is essential for newer aircraft models. The aftermarket revenue from these engines plays a crucial role in driving long-term profitability.

GE's Operating Margin Outlook

GE's operating profit margin is expected to remain steady in 2024, with a shift towards LEAP aftermarket revenue growth. The short-term margin pressure due to ramp-ups in production will give way to long-term margin expansion.

Investment Considerations

• Long-Term Profit Potential: Focus on GE's medium-term profit growth outlook post-2024.
• Valuation Perspective: The stock price relative to operating earnings is expected to improve over time.
• Investor Guidance: Consider management's strategy for margin expansion towards 2028.