Yahoo Finance Time to Buy Stock in These Conglomerates?
Investing in companies that are considered business conglomerates is often beneficial for growth and sustainability.
With their extensive reach, here are three conglomerates' investors may want to consider as they are top-rated Zacks stocks at the moment.
General Electric (GE)
Out of the Zacks Multi-Sector Conglomerates General Electric stock is standing out. General Electric is sporting a Zacks Rank #1 (Strong Buy) with its Diversified Operations Industry currently in the top 22% of over 250 Zacks industries.
General Electric has been focused on strengthening its businesses through aviation, healthcare, and renewable energy. To that point, General Electric’s business reach extends to production in aircraft engines, heavy-duty gas turbines, Haliade-X and Cypress wind turbines, and healthcare solutions among others.
Earnings estimate revisions have started to trend higher again for GE stock over the last 60 days. General Electric’s earnings are now forecasted to drop -24% this year but rebound and soar 104% in fiscal 2024 at $4.05 per share.
Shares of GE are up 12% year to date to outperform the S&P 500’s +7% and the Diversified Operations Markets -6%. General Electric’s strong YTD performance could continue with the Diversified Operations industry expected to see better margins as supply chain and inflationary concerns ease.
Image Source: Zacks Investment Research
Danaher (DHR)
Also out of the top-rated Diversified Operations Industry and a Multi-Sector Conglomerate is Danaher Corporation. Danaher stock lands a Zacks Rank #2 (Buy) with its steady growth mostly intact while also trading more attractively relative to its past from a price-to-earnings perspective.
Danaher is a global conglomerate that designs, manufactures, and markets diverse lines of professional, industrial, commercial, and consumer products.
Earnings are projected to dip -7% in Fiscal 2023 but stabilize and jump 8% in FY24 at $10.95 per share. Plus, Danaher stock trades at 24.3X forward earnings which is 41% below its decade high of 41.4X and closer to the median of 22.8X.
Image Source: Zacks Investment Research
Disney (DIS)
Lastly, Disney stock is intriguing right now and also sports a Zacks Rank #2 (Buy). Disney is part of the Zacks Consumer Discretionary sector but belongs to the Media Conglomerates Industry which is in the top 30% of all Zacks industries.
Disney has assets that span movies, television shows, and theme parks with strong top and bottom line growth expected. The growth potential of Disney’s streaming segments also makes its stock attractive. Disney is focused on expanding its Disney+, ESPN+, and Hulu memberships to rival Netflix (NFLX).
Furthermore, Disney's earnings are expected to jump 13% in FY23 and soar another 36% in FY24 at $5.42 per share. On the top line, sales are forecasted to rise 9% this year and edge up another 7% in FY24 to $96.72 billion.
Disney’s YTD performance also sticks out, shares of DIS are up +16% to top the benchmark and roughly match Netflix and its Media Conglomerates Market.
Image Source: Zacks Investment Research
Takeaway
These conglomerates may see extensive rallies as inflationary concerns begin to ease. Along with the potential of short-term gains, their diverse business breadth should continue to offer long-term value to investors as well making them viable investments for 2023 and beyond.
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General Electric Company (GE) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
