General Motors (GM – Free Report) closed the most recent trading day at $51, moving -1.89% from the previous trading session. The stock’s change was less than the S&P 500’s daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
The an automotive manufacturer’s stock has dropped by 2% in the past month, exceeding the Auto-Tires-Trucks sector’s loss of 3.73% and the S&P 500’s loss of 2.7%.
The upcoming earnings release of General Motors will be of great interest to investors. The company’s earnings report is expected on January 28, 2025. The company is expected to report EPS of $1.75, up 41.13% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $43.73 billion, reflecting a 1.75% rise from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for General Motors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.33% higher. Currently, General Motors is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 4.74. This signifies a discount in comparison to the average Forward P/E of 13.97 for its industry.
Meanwhile, GM’s PEG ratio is currently 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Automotive – Domestic industry currently had an average PEG ratio of 1.67 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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