• On June 30, 2025, General Electric Company (NYSE:GE) was removed from several major Russell value indices, including the Russell 1000 Value and Russell 3000 Value, following the index reconstitution process.
• This broad removal from value indices reflects changing criteria around the company's valuation profile and can prompt portfolio adjustments from index-tracking funds.
• We'll assess what General Electric's exit from key value indices could mean for its investment narrative and investor positioning.

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General Electric Investment Narrative Recap

To believe in General Electric as a shareholder, you need confidence in GE Aerospace's ability to turn its substantial order backlog into sustained revenue, improve operational efficiency, and manage persistent supply chain risks. The recent removal from Russell value indices mainly reflects an updated valuation profile but does not alter the company's most significant short-term catalyst: clearing its supply chain constraints to unlock revenue growth. The principal risk remains supply disruption, and the index news is not likely to materially affect this operational challenge in the near term.

Among recent announcements, GE Aerospace’s affirmation of its quarterly dividend at US$0.36 per share stands out. This continued payout may reassure investors looking for income, especially as the company works to convert its backlog into earnings, underscoring GE’s commitment to returning value while navigating industry headwinds and focusing on execution of its core aerospace business.

By contrast, investors should pay careful attention to ongoing supply chain bottlenecks, as these could …

Read the full narrative on General Electric (it's free!)

General Electric's outlook anticipates $48.7 billion in revenue and $8.2 billion in earnings by 2028. This is based on a projected 7.1% annual revenue growth rate and represents a $1.3 billion increase in earnings from the current $6.9 billion.

Uncover how General Electric's forecasts yield a $223.74 fair value, a 11% downside to its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community range from US$160.42 to US$269.38 per share. With many investors weighing in, the risk of further slowdown in GE's order conversions continues to shape share price expectations for the months ahead.

Explore 13 other fair value estimates on General Electric - why the stock might be worth as much as 8% more than the current price!

Build Your Own General Electric Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Electric research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free General Electric research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Electric's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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