In the latest market close, General Motors (GM) reached $48.13, with a -1.96% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq depreciated by 0.51%.
Coming into today, shares of the an automotive manufacturer had gained 4.58% in the past month. In that same time, the Auto-Tires-Trucks sector gained 16.76%, while the S&P 500 gained 7.37%.
The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.54, reflecting a 16.99% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $45.37 billion, reflecting a 5.41% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.31 per share and a revenue of $177.57 billion, demonstrating changes of -12.17% and -5.27%, respectively, from the preceding year.
Any recent changes to analyst estimates for General Motors should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.58% lower. General Motors is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, General Motors is currently trading at a Forward P/E ratio of 5.27. This denotes a discount relative to the industry's average Forward P/E of 10.66.
We can additionally observe that GM currently boasts a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 218, finds itself in the bottom 12% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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