In the latest close session, General Motors (GM) was up +1.35% at $81.98. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.59%.
The an automotive manufacturer's shares have seen an increase of 14.7% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 5.06% and the S&P 500's loss of 0.21%.
Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company is expected to report EPS of $2.21, up 15.1% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $44.67 billion, indicating a 6.37% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.31 per share and a revenue of $184.46 billion, signifying shifts of -2.74% and -1.6%, respectively, from the 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.16% higher. General Motors is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, General Motors is holding a Forward P/E ratio of 7.84. Its industry sports an average Forward P/E of 16.6, so one might conclude that General Motors is trading at a discount comparatively.
Also, we should mention that GM has a PEG ratio of 0.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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