In the latest trading session, General Motors (GM) closed at $45.84, marking a +1.51% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
Prior to today's trading, shares of the an automotive manufacturer had lost 14.13% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 6.08% and the S&P 500's loss of 6.57% in that time.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is slated to reveal its earnings on April 29, 2025. The company's upcoming EPS is projected at $2.66, signifying a 1.53% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $42.37 billion, indicating a 1.5% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.19 per share and revenue of $179.33 billion, indicating changes of +5.57% and -4.33%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for General Motors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 2.78% lower within the past month. Right now, General Motors possesses a Zacks Rank of #3 (Hold).
In terms of valuation, General Motors is currently trading at a Forward P/E ratio of 4.03. This indicates a discount in contrast to its industry's Forward P/E of 9.8.
We can also see that GM currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 0.81.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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