Is now the time to buy General Electric (NYSE:GE) stock as shares tread water? Not so fast! Shares are down big due to its novel coronavirus headwinds. But, as the pandemic affects its turnaround plan, it’s hard to see a rebound in the cards anytime soon.
How so? Even before the outbreak, the company faced a laundry-list of problems. Issues from years past snowballed into major hurdles. Granted, it wasn’t like the company was twiddling its thumbs. By bringing on Larry Culp as CEO, the company made a smart and proactive decision.
But, while Culp is a talented CEO, GE has a lot of moving parts. And, said parts need a lot of maintenance. In short, fixing this company, and its disparate operating units, is easier said than done.
That’s not to say Culp hasn’t made the right moves. His aggressive actions could help make General Electric “lean and mean” down the road. But, for now, everything hinges on the outbreak fading, and things “returning to normal.”
So, what’s the call here? Until the situation changes, there’s not much reason to buy this hard-hit stock.
GE Stock, Pandemic Headwinds and the Turnaround
General Electric was already a basket case before the outbreak. Except for its Healthcare unit, the company’s various units were facing big challenges.
I give GE credit for putting Culp (an outsider) at the helm, rather than a company “lifer.” A change of the guard was more than overdue. Prior management made poor decisions, as seen from