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General Electric’s Overhaul Could Be Bad News for Investors

By U.S. News & World Report

After the unexpected departure of long-time CEO Jeff Immelt earlier this month, the outlook for General Electric Co. ( GE) has become increasingly murky. GE may struggle to present a compelling long-term case for investors throughout the rest of the year, J.P. Morgan analyst Stephen Tusa Jr. says.

GE comfortably topped Wall Street’s expectations with big earnings and revenue beats in the first quarter of 2017. Nevertheless, incoming CEO John Flannery, former head of GE Healthcare, must address several issues throughout the second half of the year. Tusa says the news will be bad for investors.

First, an earnings guidance cut is likely on the table for GE. In April, GE reiterated previous 2017 full-year earnings-per-share guidance of $1.60 to $1.70, but J.P. Morgan has lowered its 2017 EPS estimate from $1.60 to $1.57. The firm also reduced its 2018 EPS estimate from $1.80 to $1.50, suggesting earnings will decline next year. By 2020, J.P. Morgan projects GE EPS will reach just $1.75.

[See: 7 of the Best Stocks to Buy for 2017.]

In addition to the potential for a significant earnings guidance cut, GE may soon announce a major corporate restructuring effort, a reduction to its share buyback program and even adjustments to its investment priorities and strategic vision, Tusa says.

GE has slowly worked itself into its current predicament over time, he says.

“Put simply, poorly timed investments to catch up to emerging markets and ultimately optimistic growth assumptions for resource-rich countries, along with a corporate imperative for market share, has left the company with structural overcapacity,” Tusa says. “While we expect a fresh start — a positive — we don’t see a quick or easy fix to the current predicament.”

If J.P. Morgan’s predictions are correct, investors aren’t likely to favor the changes coming from GE. Shares declined nearly 4 percent on Thursday following Tusa’s comments.

[See: 7 of the Worst Stocks to Buy for 2017.]

J.P. Morgan maintains an “underweight” rating on GE and has lowered its price target for the stock from $27 to $22.

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General Electric’s Overhaul Could Be Bad News for Investors originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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