Ask Matt: Is GE stock about to light it up?

Q: Is GE stock about to light it up?

A: General Electric (GE) was a bright spot in investors' portfolios this year. Analysts see more good things coming to life.

Shares of the industrial giant are up more than 20% this year as investors better understand the company and its long-term restructuring is nearing completion. The company for years has been paring down businesses that fall outside its core competencies in transportation, power and healthcare. The company's once massive financial unit has been dramatically sold off. Meanwhile, GE doubled down on power by buying the energy unit of France's Alstom. Investors are realizing GE's decision to shed financials is paying off because it allows GE to get a higher market multiple. GE is currently trading for nearly 30 times its adjusted profit over the past 12 months, which is up from 20 times earnings four years ago, says S&P Capital IQ. Revenue is also growing again. GE's revenue rose 9% in the past 12 months, an even faster growth rate than the 2.7% growth in 2014. Revenue hasn't shrunk since 2012. But while analysts see good things for GE, including long-term annual growth of 9%, much of the gains in the stock seem to be made. Analysts think GE will be worth $31.69 in 18 months, which is only 3% higher than where it is now at roughly $31 a share.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.