Why GE HealthCare Technologies (GEHC) is on investors’ radar

GE HealthCare Technologies (GEHC) has drawn attention after recent share price moves, including a one-month return of about a 7% decline and a past 3 months gain of roughly 8%, raising questions about how its fundamentals line up.

At a share price of US$78.65, GE HealthCare Technologies has seen a 7.22% 1 month share price decline after a 7.52% 3 month share price return. The 1 year total shareholder return of a 15.71% decline contrasts with an 11.46% total shareholder return over three years, suggesting momentum has cooled recently after earlier gains.

If GE HealthCare Technologies has you thinking about where else growth and risk are being repriced, it could be a good time to scan 24 healthcare AI stocks for other healthcare names on your radar.

With GE HealthCare Technologies trading at US$78.65 alongside an indicated 32% intrinsic discount, the key question is whether you are looking at an undervalued healthcare name or a stock where the market is already pricing in future growth.

Most Popular Narrative: 16% Undervalued

With GE HealthCare Technologies last closing at $78.65 against a most followed fair value of $93.25, the current narrative suggests the market is applying a discount that hinges on how well future growth and capital allocation play out under an 8.28% discount rate.

The analysts have a consensus price target of $88.0 for GE HealthCare Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $106.0, and the most bearish reporting a price target of just $73.0.

Want to see what is sitting behind that spread in outcomes? The narrative leans on measured revenue growth, firm profit margins, and a tighter share count to justify a higher future earnings base and valuation multiple. Curious which specific assumptions need to hold up for $93.25 to make sense?

Result: Fair Value of $93.25 (UNDERVALUED)

However, this hinges on tariffs and China policy risks easing, and on competitors not eroding GE HealthCare Technologies' share or pressuring its margins more than expected.

Build Your Own GE HealthCare Technologies Narrative

If you look at the numbers and come to a different conclusion, or simply prefer your own work, you can build a full view in minutes, Do it your way.

A great starting point for your GE HealthCare Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.