GE's Joint Venture Boosts Medical Device Production in India

General Electric Company GE and Wipro Enterprises Limited’s joint venture Wipro GE Healthcare recently launched a production facility in Bengaluru, India. The plant with 35 personnel is a wholly-owned subsidiary of Wipro GE Healthcare. Notably, the JV made an investment of around INR100 crore in this facility.

General Electric’s share price increased 1.1% on the last trading day, eventually closing the session at $92.49.

Founded in 1990, Wipro GE Healthcare operates across India, Sri Lanka, Maldives, Nepal, Bhutan and Bangladesh. The JV is specialized in providing medical technology solutions for early cancer detection and reduction in maternal and infant deaths.

Inside The Headlines

The new 35000 square feet manufacturing hub will be engaged in manufacturing several medical equipment like ultrasound scanners, ECG machines, CT machines, patient monitoring solutions and, etc. The production facility also has automated testers, used in the performance assessment of the medical equipment.

This facility will likely help the joint venture capitalize on the growing opportunities in the MedTech devices market in India. It will help boost the regional production of medical equipment, catering to growing demand apart from creating employment opportunities in the country.

Zacks Rank, Price Performance and Earnings Estimate Trend

General Electric with $101.9 billion market capitalization currently carries a Zacks Rank #3 (Hold). GE stands to benefit from its portfolio-restructuring program, expansion in digital business and efforts to deleverage its balance sheet in the quarters ahead.

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Shares of General Electric have lost 12.3% compared with the 11.9% decline of its industry in the past six months.

The Zacks Consensus Estimate for first-quarter 2022 earnings has decreased 36.6% to 26 cents in the past 60 days. Also, earnings estimates for 2022 have moved 8.9% south to $3.18 during the same period.

Stocks to Consider

Some better-ranked companies are discussed below.

Griffon Corporation GFF presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 56.7%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, Griffon’s earnings estimates have increased 19.9% for fiscal 2022 (ending September 2022). The stock has lost 19.4% in the past six months.

Carlisle Companies Incorporated CSL presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 35.1%, on average.

In the past 60 days, Carlisle’s earnings estimates have increased 8.7% for 2022. CSL’s shares have gained 24.2% in the past six months.

Ferguson plc FERG presently carries a Zacks Rank of #2. FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.

Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have declined 6.2% in the past six months.

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