● AI Equity Research · Industrials

GE Aerospace (GE)

AI stock analysis · Aerospace & Defense · Last analyzed Aug 19, 2026

Compass Score

3.0/5

Call

Hold

Price

$375.09

AI Target

$404.90 +7.9%

AI Analyst Summary

GE Aerospace is capitalizing on a powerful multi-year jet engine aftermarket upcycle, delivering 19.4% EPS growth and 21.1% revenue growth as commercial aviation demand continues to recover and defense spending rises. With 19 of 22 analysts rating the stock a Buy and a perfect 4-of-4 recent EPS beat streak, institutional confidence in management execution is high. The primary risk is valuation — at a PEG of 5.41 and 43.5x trailing P/E, the stock prices in near-perfection, and any growth disappointment or margin compression could trigger a sharp de-rating.

Catalysts

LEAP-1A/1B engine order momentum: Upcoming quarterly earnings could reveal further widebody and narrowbody engine backlog expansion, directly boosting Services revenue visibility into 2026–2027.
Defense contract awards: Incremental awards tied to the T901 engine upgrade program for Black Hawk helicopters and next-generation propulsion programs could provide a meaningful near-term revenue catalyst.
Margin expansion in Services: With the high-margin aftermarket segment growing faster than OE, sequential operating margin improvement in the Aerospace Services division could drive positive earnings revisions in Q3/Q4 2025.

Fundamentals

Pe Trailing P/E: 43.5x | Forward P/E: 41.3x · 2.0/5

At 43.5x trailing and 41.3x forward, GE Aerospace trades at a significant premium to the Industrials sector median (~20x). While the premium reflects its high-quality franchise and defense tailwinds, the valuation leaves little room for error.

Peg PEG: 5.41 · 1.0/5

A PEG of 5.41 is well above the 3.0 threshold that would warrant even a score of 2. The market is pricing in an extraordinarily long runway of growth that is not yet reflected in near-term earnings estimates, making this a significant valuation red flag.

Analyst Rating Strong Buy consensus (1.5) · 5.0/5

19 Buys, 2 Holds, and 1 Sell across 22 analysts maps to a consensus rating of 1.5 — at the top of the Buy/Strong Buy threshold with broad institutional conviction and a well-covered, high-confidence setup.

Earnings Trend EPS Growth YoY: +19.4% | Revenue Growth YoY: +21.1% · 4.0/5

Near-20% earnings growth and 21% revenue growth are well above sector norms, driven by the jet engine aftermarket cycle and defense demand. Growth falls just short of the 25%+ acceleration threshold for a score of 5, but the trend is robust and broad-based.

Price Target Beat EPS Beat Rate: 4 of 4 quarters (last 4) · 4.0/5

A perfect 4-for-4 beat rate over the most recent four quarters signals consistent execution. Scored 4 (vs. 5) as only 4 quarters of history are available rather than the full 8-quarter window required for the highest score.

Management Strong execution track record · 4.0/5

Consistent EPS beats, disciplined post-spin capital allocation, and strong analyst conviction all point to high-quality management. CEO Larry Culp's operational track record and the clean aerospace-focused structure post-spin support an above-average management score.

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