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Chicago, IL – April 28, 2025 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Beacon Roofing Supply BECN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors GM, Ford F and Tesla TSLA.
Here is a synopsis of all five stocks.
ACM Research is a Zacks Rank #1 (Strong Buy) that has a B for Value and a B for Growth. The company has posted back to back beats that had positive surprises of more than 115% each, but following Liberation Day, this stock has slid back down. This semiconductor stock now has a forward PE of less that 10x making it very attractive to investors. Let’s explore more about why this stock is the Bull of the Day.
ACM Research, Inc. engages in the development, manufacture, and sale of single-wafer wet cleaning equipment. It supplies process solutions that semiconductor manufacturers can use in numerous manufacturing steps to remove particles, contaminants and other random defects, and thereby improve product yield. The company tools can be used in fabricating foundry, logic and memory chips including dynamic random-access memory, or DRAM, and 3D NAND-flash memory chips. The company was founded by David H. Wang and Hui Wang in January 1998 and is headquartered in Fremont, CA.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
ACM Research has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 97% over the last year.
The most recent earnings print saw the company post $0.56 when the consensus was at $0.26. That 30 cent beats translates into a positive earnings surprise of 115%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for ACM Research.
This quarter has moved to $0.18, up from $0.37 over the last 60 days.
Next quarter has seen a smaller increase, moving from $0.35 to $0.49 over the same time period.
The full year 2025 has seen a big move, going from $1.80 to $2.15 over the last 60 days.
2026 saw a big move higher as well, going from $2.30 to $2.50 over the same period.
I see revenue in 2025 will come in around $928M which will end up being growth of about 18.7%.
Next year analysts are calling for sales of just over $1B which would be good for growth of 16.3%.
The most recent quarter saw topline growth of 31%, so those revenue estimates might turn out to be a little light.
The forward PE of 9.7x is almost half of the market multiple of 18x and well below the industry average of 26x. Price to book comes in at 1.1x which is below the 3x level that will keep the value conscious interested in this stock. Price to sales comes in just under 1.55x and could easily expand in revenue growth maintains the 25% range on a year over year basis. Operating Margins have increased over the last couple of quarters moving from 12.31% to 13.12%.
Beacon Roofing Supply is a Zacks Rank #5 (Strong Sell) after the company missed the Zacks Consensus Estimate when the company last reported. Roofing companies have been hurt by the consistently higher interest rates and the tariff tantrum may disrupt the supply chain. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Beacon Roofing Supply, Inc. engages in the distribution of residential and non-residential roofing materials. It also distributes complementary building products including siding, windows, specialty exterior building products, insulation, and waterproofing systems for building exteriors. The company was founded on August 22, 1997 and is headquartered in Herndon, VA.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Beacon Roofing Supply I see the company has missed the Zacks Consensus Estimate in each of the last three quarters and beat the number a year ago. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For Beacon I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $8.02 to $7.40 over the last 60 days.
The next year has moved from $13.88 to $12.52 over the last 30 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
General Motors is slated to release first-quarter 2025 results on April 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $2.66 per share and $42.37 billion, respectively.
The consensus estimate for the to-be-reported quarter’s earnings has moved north by 2 cents over the past seven days. The bottom-line projection indicates a modest year-over-year uptick of 1.5%. The Zacks Consensus Estimate for quarterly revenues, however, suggests a year-over-year decrease of 1.5%.
For 2025, the Zacks Consensus Estimate for GM’s revenues is pegged at $179.3 billion, implying a contraction of 4.3% year over year. The consensus mark for 2025 EPS is pegged at $11.21, implying growth of around 6% on a year-over-year basis.
In the trailing four quarters, this U.S. legacy automaker surpassed earnings estimates on all occasions, with the average earnings surprise being 15.81%.
General Motors Company price-eps-surprise | General Motors Company Quote
Our proven model predicts an earnings beat for General Motors this time around as well. The combination of a positiveEarnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GM has an Earnings ESP of +7.40% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
(See the Zacks Earnings Calendar to stay ahead of market-making news.)
General Motors sold 693,363 units in the first quarter of 2025, up 17% year over year. It posted double-digit gains across its key brands— Chevrolet (up 13.7%), GMC (up 17.6%), Cadillac (17.8%) and Buick (39.3%). The company dominated the U.S. auto industry for the quarter, leading in total, retail and fleet sales. Meanwhile, GM’s closest peer Ford saw its sales drop 1.3% in the quarter ending March.
GM’s retail sales surged 15%, marking its best first-quarter since 2018. Electric vehicle (EV) sales were up 94% to 31,887 units, with General Motors being the #2 seller of EVs in the country, trailing only Tesla.
In the quarter to be reported, General Motors delivered 442,000 vehicles in China, nearly flat year over year but down 26.3% sequentially. However, its new energy vehicle sales jumped 53.2% year over year. The Buick GL8 led the premium multi-purpose vehicle segment with 24,000 units sold, while the Wuling Hong Guang MINIEV retained its popularity. LaCrosse and Envision Plus models saw strong gains. Additionally, Chevrolet Tahoe deliveries began under GM’s Durant Guild platform in March.
Our estimate for wholesale vehicle sales volumes of the GMNA (General Motors North America) segment is 807,000 units, suggesting year-over-year growth of 1.9%. We project revenues from the GMNA segment to be $36.46 billion, implying an increase of 1%. Operating income from the unit is estimated at $3.9 billion, implying growth of 2%.
On the flip side, we expect wholesale volumes from the GMI unit (excluding China JV) to be down roughly 2% in the quarter to be reported to 102,000 units. Our projections call for a contraction of 17% in revenues year over year. However, we expect operating income of $58.3 million against a loss of $10 million in the year-ago period.
Year to date, shares of General Motors have declined 12%, outperforming the auto sector. It has also performed better than Tesla, whose shares have plunged 36% so far in 2025. Meanwhile, Ford has gained 1.6% in the same timeframe.
From a valuation perspective, General Motors is trading relatively cheap. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.26, below the industry’s 2.19. The company has a Value Score of A. Meanwhile, Tesla looks too pricey at a forward sales multiple of 7.6, whereas Ford’s P/S of 0.24 is slightly lower than GM’s.
General Motors is the top-selling automaker in the United States. It is advancing well in its electrification journey.
GM exited 2024 with several wins. Its EV portfolio became “variable profit positive” in the last quarter of 2024, with 189,000 electric vehicles produced during the year and a goal to ramp up to 300,000 units in 2025. The company expects EV losses to shrink by $2 billion this year, reflecting growing operational efficiency and scale. Meanwhile, cost discipline has been another bright spot. GM met its $2 billion cost-cutting goal and is unlocking another $1 billion in annual savings after pulling back from robotaxi development.
GM’s China operations are starting to look more promising. Its restructuring efforts in the region are showing early signs of a turnaround, with the company aiming to return to profitability this year.
Financially, GM remains sturdy. The automaker ended 2024 with $35.5 billion in automotive liquidity and returned $7.6 billion to shareholders via dividends and buybacks. A 25% dividend hike and a fresh $6 billion repurchase authorization (including a $2 billion ASR) fuel confidence.
However, near-term headwinds remain. GM expects a slight dip in internal combustion engine vehicle volumes in North America and forecasts a 1-1.5% decline in vehicle pricing, which could weigh on margins. Also, macro uncertainties and tariff troubles could cloud the company’s near-term prospects.
GM looks like a solid long-term play. However, for new investors, it may be wise to stay on the sidelines until the company outlines how it plans to navigate ongoing tariff tensions and pricing pressure. So, instead of jumping to buy the stock ahead of results, it's better to exercise patience and wait for more clarity.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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