A $12 Billion Reason to Buy GE Stock Today

GE Aerospace (GE) shares inched higher on Sept. 8 after the company announced an $11.75 billion acquisition of long-time supplier Consolidated Precision Products (CPP). Investors cheered the disclosure because the CPP transaction aims to secure key engine components and clear persistent supply chain bottlenecks. 

The buyout news arrives as GE shares have fallen out of favor with investors, currently down about 12% versus their August high. 

Why Is the CPP Deal Bullish for GE Aerospace?

GE Aerospace plans to fund the CPP deal with $7 billion in cash and the remainder with new debt. 

The Cleveland-based firm manufactures complex structural castings and airfoils across 20+ global facilities, acting as a critical bottleneck for jet engine output.

By bringing this 15-year partner in-house, GE gets to resolve component shortages that have slowed engine deliveries and aftermarket servicing.

Applying its lean operational framework FLIGHT DECK to CPP is projected to expand production capacity and unlock operational synergies, lowering structural costs in the long run. 

Management expects the agreement to be accretive to both adjusted earnings per share (EPS) and free cash flow in its first full year, which makes it bullish for GE stock. 

Should You Load Up on GE Shares Today?

GE shares are also attractive in 2026 because the giant remains one of the strongest fundamental compounders in the industrial sector.

Operating with a massive installed base of nearly 80,000 engines globally, GE enjoys steady, high-margin aftermarket service revenues that generate exceptional free cash flow. 

In the latest reported quarter, GE Aerospace saw its revenue and earnings per share (EPS) grow by an exciting 24% and 22% on a year-over-year basis, respectively. 

Note that options sentiment also remains bullish, with the upper price on GE contracts expiring mid-December indicating near 12% upside to about $376. 

How Wall Street Recommends Playing GE Aerospace

Investors could also take heart in the fact that Wall Street analysts remain constructive on GE Aerospace stock for the remainder of 2026. 

The consensus rating on GE remains at “Strong Buy,” with the mean price objective of roughly $397 signaling potential for a significant rally from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.