GE Capital still weighing down results

General Electric missed revenue estimates and only beat profit expectations because of a tax credit in the company’s financial unit. This is the fifth quarter in a row that GE missed sales estimates, and the third-straight quarter that tax benefits lifted earnings above consensus estimates.

If anyone paid attention earlier this year, I was ga-ga for GE. Today I would argue that GE shares are fairly valued. The industrial conglomerate faces similar problems as the nation’s largest banks – delinquencies on loans to consumers and commercial customers. However, I expect the banks will free themselves from these problems sooner than GE.

This isn’t any reason to run out and sell your GE shares. No, the company’s non-financial businesses still offer strong long-term growth potential. Instead, I’m saying that there is very little reason to be adding to GE at this point – I’d rather buy a real bank.

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Peter J. Lazaroff, Investment Analyst