The most recent trading session ended with General Motors (GM) standing at $49.87, reflecting a +1.92% shift from the previous trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.27%.
The an automotive manufacturer's shares have seen a decrease of 3.03% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 5.86% and the S&P 500's gain of 6.9%.
The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. The company is expected to report EPS of $2.54, down 16.99% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.37 billion, down 5.41% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.31 per share and a revenue of $177.57 billion, indicating changes of -12.17% and -5.27%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for General Motors. Such recent modifications usually signify the changing landscape of near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. As of now, General Motors holds a Zacks Rank of #5 (Strong Sell).
Looking at valuation, General Motors is presently trading at a Forward P/E ratio of 5.26. This denotes a discount relative to the industry average Forward P/E of 11.1.
Meanwhile, GM's PEG ratio is currently 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry had an average PEG ratio of 1.13 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 12% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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