Evendale, Ohio-based GE Aerospace (GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. Valued at a market cap of $260.4 billion, the company, in addition to manufacturing, also provides maintenance, repair, and overhaul (MRO) services, along with digital solutions to enhance engine performance and efficiency. 

Companies worth $200 billion or more are typically classified as “mega-cap stocks,” and GE Aerospace fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the aerospace & defense industry. As one of the world’s leading aircraft engine manufacturers, the company specializes in designing fuel-efficient, high-performance engines for both commercial and military aviation. Its extensive installed base ensures a steady revenue stream from long-term service agreements. The company is also advancing digital aviation technologies, using data analytics and AI to optimize engine performance and reduce downtime. 

This leading aircraft engine manufacturer is currently trading slightly below its 52-week high of $246, reached recently on May 28. Moreover, GE has soared 18% over the past three months, considerably outpacing the Nasdaq Composite’s ($NASX) 1.7% uptick during the same time frame.

In the longer term, GE has surged 44.9% over the past 52 weeks, notably outperforming NASX’s 12.7% returns over the same time frame. Moreover, on a YTD basis, shares of GE are up 46.4%, compared to NASX’s marginal loss.

To confirm its bullish trend, GE has been trading above its 200-day moving average over the past year, with some fluctuations, and has remained above its 50-day moving average since late April. 

On Apr. 22, GE’s shares surged 6.1% after it delivered a strong Q1 performance. The company posted adjusted revenue of $9 billion, which improved 11.5% from the year-ago quarter, largely due to robust growth in its core commercial engines and services segment revenue. Moreover, driven by a robust 460 basis points expansion in adjusted operating profit margin, its adjusted EPS advanced 60.2% year-over-year to $1.49 and topped the consensus estimates by a notable 17.3%. The company credited these gains in part to its FLIGHT DECK initiative, which is focused on improving operational execution and overcoming supply chain challenges to ramp up deliveries through 2025.

Looking ahead, GE reaffirmed its fiscal 2025 guidance, projecting adjusted EPS in the range of $5.10 to $5.45. 

Along with considerably outpacing the broader market, GE has also outperformed its rival, RTX Corporation (RTX), which gained 27.8% over the past 52 weeks and 16.5% on a YTD basis. 

Given GE’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 21 analysts covering it. While the company is trading above its mean price target of $229.58, its Street-high price target of $261 represents a 6.9% potential upside from the current price levels.