Walt Disney Co (DIS) vs. General Electric Company(GE) promises to be a close game, but I expect General Electric to pull through with a buzzer beater.
This is shaping up to be a classic match of momentum vs. value. Disney clearly has the momentum here, as the stock is up about 10% year to date and 27% over the past 12 months. Disney is up by more than 80% over the past two years.
To put that in context, the S&P 500 is up about 32%.
General Electric has traded sideways for the past two years, missing most of the monster rally of 2013-14. Shares are down by about 2% over the past year and up a modest 8% over the past two.
General Electric (GE)
Let’s dig deeper into General Electric. The 2008 meltdown forced GE to eat some serious humble pie and rebuild itself as a true industrial conglomerate. Before the crisis, its GE Capital unit had grown so large that General Electric had essentially become a high-risk hedge fund that also happened to build stuff. That didn’t end well, as GE had to run toWarren Buffett hat-in-hand for an emergency loan when the credit markets imploded.
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