U.S. Markets close in 1 hr 1 min
  • S&P 500

    4,315.43
    -117.56 (-2.65%)
     
  • Dow 30

    33,676.15
    -908.73 (-2.63%)
     
  • Nasdaq

    14,570.06
    -473.91 (-3.15%)
     
  • Russell 2000

    2,159.55
    -77.32 (-3.46%)
     
  • Crude Oil

    70.42
    -1.55 (-2.15%)
     
  • Gold

    1,763.00
    +11.60 (+0.66%)
     
  • Silver

    22.16
    -0.14 (-0.63%)
     
  • EUR/USD

    1.1729
    -0.0003 (-0.0235%)
     
  • 10-Yr Bond

    1.3070
    -0.0630 (-4.60%)
     
  • Vix

    28.06
    +7.25 (+34.84%)
     
  • GBP/USD

    1.3652
    -0.0085 (-0.6198%)
     
  • USD/JPY

    109.3600
    -0.5350 (-0.4868%)
     
  • BTC-USD

    44,590.88
    -3,435.44 (-7.15%)
     
  • CMC Crypto 200

    1,079.03
    -55.35 (-4.88%)
     
  • FTSE 100

    6,903.91
    -59.73 (-0.86%)
     
  • Nikkei 225

    30,500.05
    +176.75 (+0.58%)
     

General Motors Company (GM) Dips More Than Broader Markets: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

General Motors Company (GM) closed at $55 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500's daily loss of 0.47%.

Coming into today, shares of the company had lost 4.89% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.17%, while the S&P 500 gained 3.38%.

GM will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2021. In that report, analysts expect GM to post earnings of $1.89 per share. This would mark year-over-year growth of 478%. Our most recent consensus estimate is calling for quarterly revenue of $29 billion, up 72.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.79 per share and revenue of $139.68 billion. These totals would mark changes of +38.57% and +14.04%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.94% higher. GM currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, GM is currently trading at a Forward P/E ratio of 8.21. This represents a discount compared to its industry's average Forward P/E of 16.38.

We can also see that GM currently has a PEG ratio of 0.83. 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 1.16 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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 Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research