Behind GE Stock's Biggest Losing Streak in 40 Years

This is GE's longest daily losing streak since 2009

Nov 3, 2017 at 11:14 AM
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On Thursday, General Electric Company (NYSE:GE) closed down 0.08% -- marking its ninth straight loss, and its longest daily losing streak since 2009. Before that, you'd have to go all the way back to 1988 to see a nine-day GE losing streak, and this is just the fifth time since 1978 the stock has strung together this many consecutive declines. Here's closer look at how the GE stock year tends to perform following such a lengthy stretch of losses -- and options bulls may want to take note.

GE's Losing Streak Could Signal Short-Term Bounce

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, GE's longest losing streak was 11 days and occurred in 1985. However, this most recent streak of losses is the biggest decline of the five other streaks since 1978, with the shares losing 16.32%.

ge stock losing streaks since 1978

If history is any guide, though, the Dow stock could bounce back by the start of the new year. While GE has historically underperformed in the day and week immediately following such a lengthy losing streak, its two-week and one-month have outpaced the anytime returns roughly fivefold. Plus, GE has averaged a three-month post-signal return of 6.43% and was higher 100% of the time. This is compared to an anytime return of 2.79%, and a 62.6% win rate.

ge stock returns since 1978

General Electric Remains Worst Dow Stock of 2017

Regardless, General Electric has a firm grip on its title as the worst Dow stock of 2017. While the Dow is up 19% year-to-date and fresh off a new record high, GE shares are down 37% year-to-date, with the index's next worst stock -- Verizon (VZ) -- off just 11.3%. Today, the security is hovering between gains and losses, but was last seen down 0.3% at $47.30, putting it on track for a 10th straight drop.

 

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