GE HealthCare (GEHC) Raised Full-Year Guidance. Here’s What’s Behind Its Recovery. Maham Fatima Mon, November 9, 2026 at 1:14 PM EST 4 min read GEHC +2.06% ^GSPC +2.30% ^IXIC +2.56% ^SOX +6.14% Trade GEHC on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We recently published Forget the High-Beta Hype: 10 'Sleep Well at Night' Stocks to Buy Now, and GE HealthCare Technologies (NASDAQ:GEHC) came in 8th on the list.
Yahoo Finance reported that the S&P 500 fell more than 4% on Thursday, November 5, its worst day since the April 2025 tariff crash, erasing roughly $3 trillion in market value. The Nasdaq slid into a correction, and the PHLX Semiconductor Index dropped 12%, its worst session since March 2020.
The shock rippled well beyond one session, and Friday brought only partial relief. The S&P 500 closed at 7,376.86, up 0.31%, but the index was still on pace for its worst week since June. The VIX, Wall Street's fear gauge, settled at 25.64 after jumping as much as 70% a day earlier.
Yahoo Finance's Brian Sozzi noted that a one-day VIX surge of that size has happened only eight times since 1991. After those episodes, the S&P 500 averaged a gain of 3.0% one month later and 7.1% three months later. History leans against panic, yet it does little to smooth the ride for portfolios packed with fast-moving names. Those portfolios absorb the drawdowns first, and the drawdowns are what test an investor's patience.
That is why beta matters. Investopedia describes beta as an indicator of a stock's price volatility compared with the broader market, which carries a beta of 1.0 when measured by an index such as the S&P 500. A reading below one means the stock's price has been more stable than the market's, so a stock with a beta of 0.5 would have risen or fallen only half a percent when the index moved 1%. Investors weighing quality against momentum can find more ideas in our ranking of the best undervalued stocks to buy in October.
Investopedia explains that the forward price-to-earnings ratio divides a share price by the earnings per share analysts expect over roughly the next 12 months. It notes that no forward P/E is universally good because the ratio varies by industry, though a lower figure may suggest a stock is undervalued relative to its future earnings potential. Revenue growth of at least 5% adds a second test, since a low multiple on a shrinking business may simply mean it is cheap for a reason. Together, the two screens look for companies that are still growing at a modest price.
The recent selloff was concentrated in the AI and data-center trade, with chipmakers hit hardest and few places to hide for investors chasing momentum. Companies with little exposure to that spending sit in a different corner of the market, and precious metals producers are one such group. Our list of the best gold stocks according to analysts covers more of it.
GE HealthCare has a $37.25 billion market cap, a beta of 0.68 and a forward P/E of 14.93, with revenue growth of 7.19% and a 5-day return of 7.59%. The list shows 59 hedge fund holders in Q2 2026.
GE HealthCare is showing that its recovery has legs. Third-quarter revenue rose 7.2%, with growth in every segment, and adjusted earnings per share jumped 25%, ahead of what management had expected. Net income and adjusted operating profit both grew faster than revenue. The company raised its full-year guidance on the strength of the quarter, and its chief executive credited commercial execution and customer adoption of new products.
The order book supports the outlook. Backlog stood at $23.7 billion, and a book-to-bill ratio above one means orders are outpacing shipments. That gives the company a sizable base of future equipment revenue.
Pharmaceutical Diagnostics, which supplies the imaging agents used in scans, was the standout, with revenue up 13%. GE HealthCare also plans to buy radiopharmaceutical maker SOFIE Biosciences in an all-cash deal meant to build out its U.S. PET supply footprint. Profit margins widened as well, helped by volume, pricing and cost productivity.
Cash generation was strong, and the board raised the quarterly dividend. For investors who want healthcare exposure without drug-development risk, a low forward P/E and a modest beta, paired with a sizable backlog, make for an appealing mix.
Dive deeper with our analysis on GE HealthCare Technologies (GEHC) here: Why GE HealthCare (GEHC) Is Doubling Down on Pharmaceutical Diagnostics?
While we acknowledge the potential of GEHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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This article is originally published at Insider Monkey.
