Shares of General Motors (GM) have been strong performers lately, with the stock up 27.8% over the past month. The stock hit a new 52-week high of $70.76 in the previous session. General Motors has gained 32.8% since the start of the year compared to the 8% gain for the Zacks Auto-Tires-Trucks sector and the 9.7% return for the Zacks Automotive - Domestic industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 21, 2025, General Motors reported EPS of $2.8 versus consensus estimate of $2.28 while it beat the consensus revenue estimate by 9.76%.
For the current fiscal year, General Motors is expected to post earnings of $10.14 per share on $183.5 in revenues. This represents a -4.34% change in EPS on a -2.11% change in revenues. For the next fiscal year, the company is expected to earn $10.94 per share on $182.23 in revenues. This represents a year-over-year change of 7.92% and -0.69%, respectively.
Valuation Metrics
Though General Motors has recently hit a 52-week high, what is next for General Motors? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
General Motors has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.1X. On a trailing cash flow basis, the stock currently trades at 3X versus its peer group's average of 5.8X. Additionally, the stock has a PEG ratio of 1. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making General Motors an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, General Motors currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if General Motors fits the bill. Thus, it seems as though General Motors shares could have a bit more room to run in the near term.
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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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