Should You Invest $1,000 in GE Stock Right Now?

Key Points

• GE now represents the aerospace manufacturing component of the conglomerate.

• Aircraft engine manufacturers are having a moment.

• 10 stocks we like better than GE Aerospace ›

General Electric was once a legendary American company. It spanned industries from aerospace and transportation to energy, healthcare, locomotives, appliances, and finance. It also helped build the first commercial nuclear plants and owned the NBC television network for more than two decades.

For much of the 1990s and 2000s, GE was among the 10 largest S&P 500 companies by market cap. It was considered the model American conglomerate. Other CEOs tried to emulate its success -- and they idolized GE CEO Jack Welch.

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GE was a component of the Dow Jones Industrial Average -- the rarefied index of just 30 prominent U.S.-listed companies -- for more than a century.

The stock -- and the company's fortunes -- peaked in about 2000.

The downfall

And then it all fell apart like a slow-motion car wreck due to too much diversification, failed business strategies, and a disastrous foray into financial services. Losses at GE's financial unit almost sank the company during the Great Recession.

But guess what? GE stock is back. And it just hit a new all-time high, its first in 25 years.

Of course, the GE ticker no longer represents the original conglomerate. Today, it belongs to GE Aerospace (NYSE: GE). The original General Electric company split into three public companies beginning in 2021. The other two are GE Vernova (NYSE: GEV), which makes power equipment, and GE HealthCare Technologies (NASDAQ: GEHC).

GE Aerospace has fared the best of the three over the past five years. It's up 766% over that time, more than twice the return of GE Vernova and over 20 times the return of GE HealthCare.

And GE Aerospace is definitely worth a look for investors. The stock's run-up has continued into 2025 -- it's up 76% so far this year. The company makes jet and turboprop engines, and it's thriving due to the fact that the aircraft manufacturing industry is riddled with bottlenecks and supply problems.

Image source: Getty Images.

Mismatched supply and demand

There is a severe shortage of aircraft and components due to a production halt during the pandemic, a lack of talent, and an aging global fleet of planes in need of repairs or outright retirements and replacements.

Aircraft engine maintenance and repair has become a "choke point" for commercial aviation, according to consulting firm Bain & Co., with shop turnaround times up 35% for legacy engines and 150% for new engines. Bain says these problems won't even peak until mid-2026 and should last through the end of this decade.

This year has already seen major manufacturing delays at major plane makers including Boeing, maintenance problems at engine makers Pratt & Whitey and Rolls-Royce, and a spare parts shortage across the industry.

Robust results

That unmet demand for aircraft engines and parts is showing up in GE Aerospace's financial results. The company posted revenue of $11 billion in the second quarter, a 21% increase over a year ago. New orders during the quarter climbed 28% to $11.7 billion. And services rose 28% as well. Earnings per share climbed 38% to $1.66. Both earnings and revenue blew past Wall Street's expectations for the quarter.

Management also raised its outlook for revenue growth this year, from low double-digit growth to growth in the high teens.

Wall Street agrees with that. It expects revenue to rise 16% this year and another 11% in 2026. Earnings should climb 28% this year and another 18% next year.

Clearly, this is a company in the right sector at the right moment.

It's been a long time since investors were excited about GE stock. But with a tight focus on supplying engines to the air travel industry, one that is experiencing rising travel demand, GE Aerospace seems to have ignited something. The sky is the limit here.

Should you invest $1,000 in GE Aerospace right now?

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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE HealthCare Technologies. The Motley Fool recommends GE Aerospace, Ge Vernova, and Rolls-Royce Plc. The Motley Fool has a disclosure policy.