General Motors (GM) closed the most recent trading day at $48.28, moving -2.01% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.84%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.91%.
Shares of the an automotive manufacturer have depreciated by 2.18% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 0%, and lagging the S&P 500's gain of 1.44%.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is forecasted to report an EPS of $2.52, showcasing a 17.65% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $45.37 billion, indicating a 5.41% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.31 per share and a revenue of $177.57 billion, signifying shifts of -12.17% and -5.27%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. As of now, General Motors holds a Zacks Rank of #3 (Hold).
In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 5.29. This represents a discount compared to its industry average Forward P/E of 12.26.
We can additionally observe that GM currently boasts a PEG ratio of 1.32. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.18.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 176, placing it within the bottom 29% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Motors Company (GM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
