GE Aerospace (GE) shares have dropped 15% over the past three months, underperforming the S&P 500, which gained 3.2% during the same period.
The broader industry fell 14.9%, with peers RTX Corporation (RTX) and L3Harris Technologies (LHX) declining 6% and 18.6%, respectively, over the same timeframe.
GE closed most recently at $305.62, sitting below its 52-week high of $388.84 but above its 52-week low of $268.91.
The stock is currently trading below both its 50-day and 200-day moving averages, a technical signal that has some investors questioning whether now is the right moment to buy.
The strongest driver of GE Aerospace’s performance remains the persistent strength of its Commercial Engines and Services segment, fueled by demand for LEAP, GEnx, and GE9X engines.
Engine deliveries within that segment increased 26% year over year in the second quarter of 2026, while revenues and orders jumped 27% and 18%, respectively.
In the first nine months of 2026, GE secured major engine orders from United Airlines and Delta Air Lines for Boeing 787 Dreamliners, along with LEAP engine orders from American Airlines and Copa Airlines.
CFM International, the 50/50 joint venture between GE and Safran, also landed an order from BOC Aviation for up to 200 LEAP-1A and 100 LEAP-1B engines.
The Defense and Propulsion Technologies segment also posted solid results, with second-quarter revenues and orders up 16% and 12%, respectively, driven by strong demand across propulsion and aftermarket services.
Propulsion and Additive Technologies revenues grew 23%, led by Avio Aero, while the Defense and Systems business posted 12% revenue growth, including a 7% rise in unit deliveries.
GE raised its dividend by 30.6% to 36 cents per share in February 2026 and paid $873 million in dividends during the first half of the year, alongside $4.2 billion in share repurchases.
The company has also upgraded its 2026 free cash flow forecast to $8.9 to $9.2 billion, above its earlier projection of $8.0 to $8.4 billion.
GE Aerospace has outlined plans to raise total shareholder returns by 20% to roughly $24 billion over the 2024 to 2026 period through dividends and buybacks combined.
Despite the strong operational momentum, rising debt remains a concern, with total borrowings reaching $19.2 billion exiting the second quarter, including $17.2 billion in long-term debt.
Cost pressures also persist, as the cost of sales surged 26.7% year over year to $8.7 billion in the second quarter of 2026, squeezing margins.
On valuation, GE trades at a forward 12-month price-to-earnings ratio of 34.79X, well above the industry average of 27.16X and significantly higher than RTX at 24.13X and L3Harris at 18.03X.
The Zacks Consensus Estimate for GE’s 2026 earnings has risen 0.6% over the past 60 days to $7.91 per share, reflecting year-over-year growth of 24.2%.
The 2027 consensus estimate also moved up 0.6% to $9.04 per share, implying additional year-over-year growth of 14.3%, signaling continued confidence among analysts covering the stock.
Despite its premium valuation, GE Aerospace currently holds a Zacks Rank of 2, classified as a Buy, suggesting that analysts view the pullback as a potential entry point rather than a structural problem.
