General Motors (GM) closed at $48.13 in the latest trading session, marking a -1.78% move from the prior day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.31%.
Shares of the an automotive manufacturer have depreciated by 0.18% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 0.34%, and lagging the S&P 500's gain of 5.05%.
The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. In that report, analysts expect General Motors to post earnings of $2.52 per share. This would mark a year-over-year decline of 17.65%. Simultaneously, our latest consensus estimate expects the revenue to be $45.37 billion, showing a 5.41% drop compared to the year-ago quarter.
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.
It is also important to note the recent changes to analyst estimates for General Motors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. General Motors presently features a Zacks Rank of #3 (Hold).
In the context of valuation, General Motors is at present trading with a Forward P/E ratio of 5.27. This represents a discount compared to its industry average Forward P/E of 11.54.
Also, we should mention that GM has a PEG ratio of 1.32. 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. The Automotive - Domestic industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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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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