General Electric (GE) is trading down another 5% today as it flirts with a share price below $8. It’s been as painful as it gets for GE and shareholders for the last two years. Since peaking just above $30 in mid-2016, the stock has been straight down. At its current level, the stock is just 55 cents (7%) above the price it closed at on March 9th, 2009 when the S&P 500 made its low of the Financial Crisis. Below is a price chart highlighting the destruction.
What makes the stock’s recent drop more painful than its drop in the mid-2000s is that this time around the rest of the market has been surging. Below is a relative strength chart of GE compared to the S&P 500. When the line is rising, the stock is outperforming the S&P 500, and vice versa for a falling line. As shown, relative strength for GE versus the broad market has plunged to new multi-decade lows.
Below is a table showing the worst performing current S&P 500 members since the March 9th, 2009 low for the S&P 500. (This is simple price change and doesn’t include total returns.) As shown, GE is the 13th worst stock with a gain of just 7.45%. There are actually nine current S&P 500 members that are down since 3/9/09, so at least GE is still up!
Once the largest company in the world, there are now concerns regarding GE’s current financial status, and as the stock’s price continues to shrink, it doesn’t provide much of a boost to investor sentiment towards the broader market.