What No One Is Talking About in GE’s Turnaround

Photograph by Sebastien Bozon/AFP/Getty Images

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Analysts and investors agree on what matters most at General Electric (GE): cash flow and fixing the ailing power division. That’s not all that matters for the long-term success of the company, though.

After the investor event Thursday, a bevy of analyst notes appeared, opining on industrial free cash flow and CEO Larry Culp’s ability to turn around GE Power. The company’s 2019 earnings—and why its earnings don’t matter—are other popular topics for Wall Street analysts these days, along with debt reduction.

All four issues are important to GE, but investors shouldn’t forget about one other big thing: aftermarket parts and services for the company’s turbines, engines, and health-care equipment. Understanding this market can help predict what cash flow will look like after the turnaround is complete.