General Electric Co. (NYSE: GE) reported very strong earnings last week of $0.44 per share, versus $0.40 for the same quarter last year. This company is so large and so diverse that it has been compared to herding cats. So many moving parts and somewhat dependent on global growth as opposed to just United States growth. CEO Jeffrey Immelt has stated the goal to grow earnings at 2-3 times the global GDP -- that's global!!

General Electric's stock price is sitting right at the mid-point of its 52-week range. At Friday's closing price of $35.38, it's $3 above the 52-week low, and $3 above the 52-week high. If GE continues to maintain double-digit percentage earnings growth, investors will begin to chase the shares back up to the high side of the 52-week range. Immelt has pressured his multiple businesses to perform and perform now.

General Electric is focused more on building existing businesses rather than expanding through acquisitions or joint ventures. GE will focus this year and next on the lucrative finance units. GE Capital is the goose that lays the golden egg; it's predictable and fairly high margin. Also, GE Capital and its subsidiaries are global in reach and scope. The commercial finance division is making a strategic and profitable acquisition in Japan. It's all about the margins.

GE pays a healthy and handsome dividend of $1.12, representing a 3.2% current yield. Investors look to GE for its current yield, but if GE can maintain a steady 10% growth rate for revenues and earnings, the shares will only accelerate from here.

Many institutional investors think GE is a bit undervalued at this price level, due to the expected margins gains from GE focuses on the capital lending business. They are probably correct and GE is a buy here for conservative growth accounts.

Georges Yared is the CIO of Yared Investment Research.