GE Aerospace - (GE) - September 03, 2024

The SIACharts Hypothetical US 5-Stock Model has had a stellar year, and with the sale of Nvidia now behind us, shares of GE Aerospace (GE) have emerged as the standout performer for this SIA US Model. GE Aerospace, a global leader in jet and turboprop engines and integrated systems for commercial, military, business, and general aviation aircraft, has captured significant market attention. Its shares have surged 92.50% over the past year and have contributed 117.85% to portfolio performance since their initial purchase on March 14, 2023, at a price of $91.17. At that time, GE shares had entered the Favored Green Zone of the SIA Hypothetical US Model Universe, leading to the purchase of 16,437 shares. Prior to this, GE was in the Unfavored Red and Neutral Yellow zones, as highlighted by the shaded red oval in the chart. We also took note of additional purchases using the proceeds from the GE Vernova spinoff (3,132 shares at $138.15) and further acquisitions funded by the substantial Nvidia sale (1,268 shares at $164.67) as part of a portfolio rebalance. These GE investments have consistently delivered strong returns, and the shares seem poised for another breakout, as indicated by the green support lines. With a Beta of 1.73, any market rallies should continue to benefit shareholders of this $189 billion market cap giant. GE Aerospace, with an SMAX score of 9 out of 10, is showing exceptional near-term strength compared to other asset classes.

Turning to the SIA Hypothetical US 5-Stock Model portfolio, GE is positioned alongside Goldman (Financial), Costco (Foods), Oracle (Software), and Netflix (Media), creating a diverse lineup of top performers. The portfolio has risen 945.95% since inception, compared to the S&P 500 Index's 289.98% (based on 10-year performance and backtested beyond). This translates to a CAGR of 14.28% versus the benchmark SPX.I's 8.05% and a 70.14% YTD return versus the benchmark's 18.42%. The overall risk profile of the portfolio is measured with a Beta of 0.64, compared to the market's Beta of 1, and an Alpha of 2.37, with further diagnostics detailed in the attached table. Stock Selection Process: FOR ADVISOR USE ONLY The hypothetical stock selection process recommends the top 5 relative strength-ranked stocks from the SIA S&P 100 universe, ensuring only one stock per sector to maintain diversification. When a holding is sold, it is replaced by the highest-ranked stock from the Relative Strength rankings with a SMAX score of 6 or higher. If the top-ranked stock already represents a sector currently held in the model, the selection moves to the next highest-ranked alternative. The strategy will sell any investment that falls into the Neutral zone with a SMAX score of 5 or less or moves to the Unfavored zone.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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