It's hard to make the case that General Electric
isn't necessarily the best bellwether for the industrial economy, but
I'm going to do it anyway! The argument is that the company's
profitability is skewed toward a few large sectors of the economy.
Ultimately, a company like Emerson Electric may prove more indicative of the industrial sector overall, with Rockwell Automation providing a good proxy for capital spending in the manufacturing sector.
Indeed, understanding General Electric's profit
drivers is the key to Fools answering another question. Specifically,
just how did the company record 8% revenue growth in its industrial
segment in the recent quarter?
General Electric outperforming its peers in the first quarter
The question is relevant because Emerson Electric is expecting underlying growth of only 3%-5% this year, while Rockwell Automation's forecast of 3%-6% growth is pretty similar. With this in mind, is General Electric likely to continue growing its industrial revenue at nearly double what its peers are doing?
The question is relevant because Emerson Electric is expecting underlying growth of only 3%-5% this year, while Rockwell Automation's forecast of 3%-6% growth is pretty similar. With this in mind, is General Electric likely to continue growing its industrial revenue at nearly double what its peers are doing?
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