General Motors (GM – Free Report) closed the most recent trading day at $49.44, moving -0.7% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.
The an automotive manufacturer’s shares have seen an increase of 4.16% over the last month, surpassing the Auto-Tires-Trucks sector’s loss of 20.08% and the S&P 500’s loss of 7.48%.
The upcoming earnings release of General Motors will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $2.67, reflecting a 1.91% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $42.7 billion, indicating a 0.73% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.52 per share and a revenue of $180.2 billion, signifying shifts of +8.68% and -3.87%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for General Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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, the Zacks Consensus EPS estimate has shifted 0.67% upward. General Motors is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that General Motors has a Forward P/E ratio of 4.32 right now. This indicates a discount in contrast to its industry’s Forward P/E of 11.13.
Also, we should mention that GM has a PEG ratio of 0.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Automotive – Domestic industry held an average PEG ratio of 0.82.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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