General Motors Company (GM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, General Motors Company (GM) closed at $33.74, marking a -0.91% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Heading into today, shares of the company had lost 16.73% over the past month, lagging the Auto-Tires-Trucks sector's loss of 5.93% and the S&P 500's loss of 1.21% in that time.
Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. In that report, analysts expect General Motors Company to post earnings of $1.53 per share. This would mark a year-over-year decline of 26.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.54 billion, up 7.11% from the year-ago period.
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.
Any recent changes to analyst estimates for General Motors Company should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. General Motors Company is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that General Motors Company has a Forward P/E ratio of 5.48 right now. This represents a discount compared to its industry's average Forward P/E of 10.94.
Meanwhile, GM's PEG ratio is currently 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GM's industry had an average PEG ratio of 1.4 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.
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