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General Motors Company (GM) Gains As Market Dips: What You Should Know

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General Motors Company (GM) closed at $31.72 in the latest trading session, marking a +0.6% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the company had lost 5.03% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.41%, while the S&P 500 lost 1.89%.

Wall Street will be looking for positivity from General Motors Company as it approaches its next earnings report date. This is expected to be July 26, 2022. The company is expected to report EPS of $1.56, down 20.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $37.61 billion, up 10.07% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.90 per share and revenue of $154.28 billion. These totals would mark changes of -2.4% and +21.47%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for General Motors Company. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.36% lower. General Motors Company currently has a Zacks Rank of #4 (Sell).

Investors should also note General Motors Company's current valuation metrics, including its Forward P/E ratio of 4.57. This valuation marks a discount compared to its industry's average Forward P/E of 11.05.

Meanwhile, GM's PEG ratio is currently 0.46. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow GM in the coming trading sessions, be sure to utilize Zacks.com.


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