GE reported better-than-expected fourth quarter earnings on Friday, but the company has been taking measures to narrow its focus and become an industrials company. The company sold its GE Appliances brand to Elextrolux last year. It’s winding down its massive finance unit, GE Capital and acquired French power company Alstom last year. This begs the question: is GE still a bellwether stock for the economy, as it becomes more narrow and focused? Nick Heymann, an analyst at William Blair, says the company is becoming less of an economic bellwether stock than it once was. He says GE tracks the pulse of reinvestment in global infrastructure to make the world operate, but that’s different than producing products that consumers purchase in stores. Though Morningstar analyst Barbara Noverini said the company’s global reach makes it a good snapshot of the world economy: ‘While GE’s portfolio is much more heavily concentrated in industrials now, diversification within the portfolio should still benefit the company.’ TheStreet’s Scott Gamm reports from New York.
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