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Why the Market Dipped But General Motors (GM) Gained Today

The latest trading session saw General Motors (GM) ending at $48.11, denoting a +0.82% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw a decrease of 1.09%.

Shares of the an automotive manufacturer have appreciated by 8.18% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 4.91% and the S&P 500's gain of 2.73%.

The upcoming earnings release of General Motors will be of great interest to investors. The company is predicted to post an EPS of $2.67, indicating a 39.79% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $44.94 billion, up 0.43% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.44 per share and a revenue of $174.72 billion, representing changes of +22.92% and +1.68%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for General Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. General Motors is currently a Zacks Rank #3 (Hold).

With respect to valuation, General Motors is currently being traded at a Forward P/E ratio of 5.06. This denotes a discount relative to the industry's average Forward P/E of 12.67.

Meanwhile, GM's PEG ratio is currently 0.55. 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 industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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General Motors Company (GM) : Free Stock Analysis Report

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