In the latest trading session, General Motors (GM) closed at $59.92, marking a +2.29% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.34%.
The an automotive manufacturer's stock has dropped by 0.37% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 14.02% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. On that day, General Motors is projected to report earnings of $2.32 per share, which would represent a year-over-year decline of 21.62%. In the meantime, our current consensus estimate forecasts the revenue to be $44.27 billion, indicating a 9.19% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $9.44 per share and a revenue of $179.81 billion, demonstrating changes of -10.94% and -4.07%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for General Motors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, General Motors boasts a Zacks Rank of #3 (Hold).
Investors should also note General Motors's current valuation metrics, including its Forward P/E ratio of 6.21. Its industry sports an average Forward P/E of 14.7, so one might conclude that General Motors is trading at a discount comparatively.
One should further note that GM currently holds a PEG ratio of 1.24. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.5.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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General Motors Company (GM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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