General Motors Company (GM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, General Motors Company (GM) closed at $35.99, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the company had lost 7.8% over the past month, lagging the Auto-Tires-Trucks sector's loss of 4.07% and the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. On that day, General Motors Company is projected to report earnings of $1.53 per share, which would represent a year-over-year decline of 26.79%. Meanwhile, our latest consensus estimate is calling for revenue of $38.54 billion, up 7.11% from the prior-year quarter.
GM's full-year Zacks Consensus Estimates are calling for earnings of $6.21 per share and revenue of $161.69 billion. These results would represent year-over-year changes of -18.18% and +3.16%, respectively.
Investors should also note any recent changes to analyst estimates for General Motors Company. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. General Motors Company currently has a Zacks Rank of #2 (Buy).
In terms of valuation, General Motors Company is currently trading at a Forward P/E ratio of 5.75. Its industry sports an average Forward P/E of 10.76, so we one might conclude that General Motors Company is trading at a discount comparatively.
Also, we should mention that GM has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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