General Electric (NYSE: GE) is gaining investor confidence once more as stocks hit a 7-year high. The company recently sold what remains of its Australia and New Zealand finance business in an effort to focus more on its manufacturing arm. The company's return to its roots is paying off and turning things around.

GE transformed its finance division in Spring in the form of GE Capital. It also acquired French rail-transportation company Alstom in September and just this Tuesday, the company sealed a US$2.6 billion [AU$3.6 billion]contract to work on 1,000 trains in India for the next decade. "It is a major advancement and milestone for India and for GE," GE's Chief Executive Officer Jeff Immelt said in a statement.

The company's recent decisions reflect its laser focus on developing and maintaining industrial businesses presently and it is registering well with the investors. GE's stocks peaked at US$30.67 (AU$43) per share on Wednesday. This is the highest for the company in seven years -- almost 20 percent up this year.

It took GE quite some time before it posted ideal stock performance. The company previously saw a US$42 (AU$59) share dive in the latter part of 2007. It also reached US$7 (AU$9.80) a share in March 2009 when the rest of the stock market was at the peak of the financial crisis. Since then, the management has taken the right steps to transform the company.

As part of its transformation efforts, GE will let go of its commercial lending and leasing portfolio. According to Bloomberg, GE made the offer to Sankaty Advisors, an affiliate of Bain Capital LLC. In just eight months, the company already made moves to release three consumer and commercial financing businesses in the area. According to the release, all transactions should be settled in Q1 of 2016.

Immelt clarified that GE will focus on products including locomotives, oilfield equipment and jet engines.

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