General Electric Company'sGE business arm - GE Additive - recently inked a Memorandum of Understanding (MoU) with Switzerland-based technology group - Oerlikon - for jointly accelerating the development of additive manufacturing.
The company is poised to grow on the back of diligent acquisitions, new investments and robust cash flow. However, we believe that headwinds, such as a stronger U.S. dollar, might weigh over the benefits accrued from the aforementioned initiatives. Over the last one month, shares of this Zacks Rank #4 (Sell) stock lost 0.97%, as against 1.77% growth recorded by the Zacks categorized Diversified Operations industry.
Per the latest MoU, Oerlikon would be a favored materials supplier and component producer to GE Additive and its allied companies. GE Additive would provide additive services and machines to Oerlikon.
Notably, the two companies would be jointly conducting certain research and development activities on additive machine and materials over the next five-year period, since the MoU was publicized in the Paris Air Show.
Both, GE Additive and Oerlikon, noted that the adoption rate of additive manufacturing (3D printing) technology is rapidly increasing and gaining popularity, supported by its transformative power. The companies intend to develop this unique technology and meet the booming demand for additive components across different industries, through this MoU.
General Electric has gained the status of being the chief end user and innovator of additive technology. Apart from the $1.4 billion expended for the acquisition of Arcam and Concept Laser, General Electric has spent nearly $1.5 billion on additive and manufacturing technologies over the last 10 years. In 2016, the company established GE Additive and became the biggest supplier of additive materials, technology and services for numerous industries across the globe.
Stocks to Consider
A few better-ranked stocks in the industry are listed below:
Hitachi Ltd. HTHIY has a remarkable average positive earnings surprise of 158.49% for the trailing four quarters and currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 3.10% for the last four quarters.
Advanced Disposal Services Inc. ADSW , also a Zacks Rank #2 stock, has an outstanding average positive earnings surprise of 227.78% for the past four quarters.
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