GE Aerospace (GE) stock marches on despite multiple challenges including inflation, supply chain issues, and regulatory issues at Boeing. We believe the stock is not in buy territory because of these issues and better prices might be available down the road.

GE Aerospace is a General Electric Company division, engaged in designing, manufacturing, and servicing commercial engines, as well as integrated systems for military, business, and general aviation jet and turboprop aircraft worldwide. The company is identified as an original equipment manufacturer in the field of aerospace propulsion and systems.

What sets GE Aerospace apart in the aerospace propulsion industry is its vast experience and technological advancements. The company pursues sustainability by working on fuel-efficient engines that are seeing a rise in demand due to SAF compatibility requirements.

The company’s leading products include jet engines for both commercial and military aircrafts, turboprop engines, integrated systems comprising power generation and distribution products, and additive manufacturing.

The primary revenue sources for GE Aerospace are engine sales, aftermarket services, and integrated systems solutions.

Key customers of the company include major civilian airlines, military organizations, and aircraft original equipment manufacturers including Boeing and Airbus. GE Aerospace has a global presence, spread across North America, Europe, and Asia-Pacific region.

The company continues to be troubled by supply chain disruptions. The recovery isn't going all that well and the company faces the added pressure of higher material and labor costs. The company has already identified the supplier locations that are causing the material shortages and is addressing the issue. The stock price seems to have already priced in an improved supply chain, which is why there is limited upside in terms of stock price.

Boeing's troubles with regulatory authorities are also causing unnecessary pressure on the production rates. Boeing does not make its own engines and uses GE Aerospace and Rolls-Royce technology for this purpose. Until Boeing recovers from its management issues, GE Aerospace will continue to face problems improving its production rates.

For the above two reasons, the company is likely to trade sideways. Investors looking to take a position in the stock would be better off keeping a close eye on how the company's fundamentals improve in the near term.

GE Aerospace is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held GE at the end of the second quarter which was 95 in the previous quarter. While we acknowledge the potential of GE as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.