General Motors (GM) ended the recent trading session at $57.34, demonstrating a -1.15% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the an automotive manufacturer had gained 7.11% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 5.64% and the S&P 500's gain of 2.09%.
The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.32, marking a 21.62% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $44.27 billion, down 9.19% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.44 per share and revenue of $179.81 billion. These totals would mark changes of -10.94% and -4.07%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for General Motors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. General Motors is currently a Zacks Rank #3 (Hold).
In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 6.15. This represents a discount compared to its industry average Forward P/E of 14.43.
One should further note that GM currently holds a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Automotive - Domestic industry stood at 2.47 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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General Motors Company (GM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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