Benzinga's PreMarket Prep airs every morning from 8-9:00 a.m. EST. During that fast-paced highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.
On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.
For those who don't have the time to tune in live or listen to a recording, Benzinga will highlight a stock of the day that was featured on the show.
Stock Of The Day: General Electric
One important element of Benzinga's PreMarket Prep Show is our interpretation of ratings changes by Wall Street analysts. Whether or not you incorporate the actions into your trading or investing strategies is up to you, but you can't ignore the short- and long-term impact on share prices.
The hosts of the show have their favorites and note the moves by certain analysts in certain sectors and in individual issues. For example, Gene Munster, former Piper Jaffray analyst and founder of Loup Ventures, has made tremendous calls in the tech sector over the last two decades and his comments do impact investing perspectives.
The Big Guns In GE
If an investor followed the General Electric (NYSE: GE) rating changes by Stephen Tusa of JPMorgan and John Inch of Gordon Haskett, they may have more caution owning shares of the company over the last few years. Upon review of their analysis, it's obvious both analysts have been skeptical of company's turnaround and have issued rating changes to reflect that opinion.
On Feb. 7, Inch upgraded the issue from Underperform to Hold and bumped his price target from $7 to $11. Although the issue did retreat from that day's close ($12.83), mainly due to the overall market implosion, it has returned to the level of his price target. Therefore, at this level, this is fairly valued in his opinion based on the current fundamental information available.
Before today's open, Tusa upgraded the issue from Underweight to Neutral. It should be noted Tusa raised his price target $5 to $8, so with issue trading at $11, he still deems it overvalued.
Short-Term Price Action
Based on Tusa being such an influential analyst, co-host Dennis Dick purchased shares of the issue in pre-market trading for a short-term trade. It should be emphasized that this was only for a short-term trade, with a plan to exit early in Monday's session.
The author of this article cited potential resistance Friday's high at $11.19. After a higher open, the issue peaked just above that high at $11.26 and is now trading above and below the $11 level.
Photo credit: Momoneymoproblemz, via Wikimedia Commons