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General Electric's (GE) Board Approves Healthcare Unit Spin-Off

General Electric’s GE board has approved the previously announced spin-off of its healthcare business, GE HealthCare, into a separate public company.

The spun-off entity will become a corporation and be renamed GE HealthCare Technologies Inc. It will begin trading on the Nasdaq on Jan 4, 2023, under the ticker symbol GEHC, while GE will continue to trade on NYSE.

General Electric’s board has approved a distribution to the company’s shareholders of at least 80.1% of the outstanding shares of GE HealthCare. GE shareholders will receive one share of GE HealthCare stock for every three shares of GE stock held on the record date for the distribution, Dec 16, 2022. The distribution is expected to take place on Jan 3, 2023. Upon completion of the spin-off, GE will retain up to 19.9% of the outstanding shares of the GE HealthCare stock.

General Electric Company Price

General Electric Company Price
General Electric Company Price

General Electric Company price | General Electric Company Quote


The spin-off is part of General Electric’s plan to split its business into three independent companies — comprising GE Healthcare, GE Aviation (to be renamed GE Aerospace) and the combined operations of GE Digital, Renewable Energy and GE Power (to be named GE Vernova).

The spin-off of GE Digital, Renewable Energy and GE Power businesses is expected to be completed in early 2024. Following the completion of these transactions, GE plans to operate as an aviation-focused company starting in early 2024. GE’s separation into three public companies is expected to help each business to flourish through better operational focus, capital allocation policies and financial flexibility.

Zacks Rank & Key Picks

General Electric presently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering are as follows:

Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1 (Strong Buy). AIT delivered a trailing four-quarter earnings surprise of 24.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Applied Industrial has an estimated earnings growth rate of 14.3% for the current fiscal year. The stock has gained 25.8% in the past six months.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2 (Buy). PH pulled off a trailing four-quarter earnings surprise of 11.3%, on average.

Parker-Hannifin has an estimated earnings growth rate of 2.2% for the current fiscal year. Shares of PH have rallied 7.2% in the past six months.

IDEX Corporation IEX carries a Zacks Rank #2. The company pulled off a trailing four-quarter earnings surprise of 5.7%, on average.

IDEX has an estimated earnings growth rate of 28.3% and 6.1% for 2022 and 2023 respectively. The stock has rallied 21.1% in the past six months.

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General Electric Company (GE) : Free Stock Analysis Report

ParkerHannifin Corporation (PH) : Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

IDEX Corporation (IEX) : Free Stock Analysis Report

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