In the latest market close, General Motors (GM) reached $44.57, with a +0.79% movement compared to the previous day. This change outpaced the S&P 500's 0.13% gain on the day. On the other hand, the Dow registered a loss of 1.33%, and the technology-centric Nasdaq decreased by 0.13%.
Heading into today, shares of the an automotive manufacturer had lost 11.19% over the past month, lagging the Auto-Tires-Trucks sector's loss of 6.77% and the S&P 500's loss of 6.3% in that time.
Analysts and investors alike will be keeping a close eye on the performance of General Motors in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2025. The company's upcoming EPS is projected at $2.64, signifying a 0.76% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $42.37 billion, showing a 1.5% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.19 per share and a revenue of $179.33 billion, signifying shifts of +5.57% and -4.33%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.85% lower. Right now, General Motors possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Motors has a Forward P/E ratio of 3.95 right now. Its industry sports an average Forward P/E of 9.29, so one might conclude that General Motors is trading at a discount comparatively.
We can additionally observe that GM currently boasts a PEG ratio of 0.63. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.77 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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