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General Motors Company (GM) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, General Motors Company (GM) closed at $40.62, marking a +0.22% move from the previous day. This change lagged the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the company had gained 3.95% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 6.27% and the S&P 500's loss of 7.95% in that time.

Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. The company is expected to report EPS of $2.04, up 34.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.31 billion, up 58.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $154.24 billion, which would represent changes of -3.96% and +21.45%, respectively, from the prior year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team 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, 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 remained stagnant. General Motors Company currently has a Zacks Rank of #3 (Hold).

Investors should also note General Motors Company's current valuation metrics, including its Forward P/E ratio of 5.97. This represents a discount compared to its industry's average Forward P/E of 11.05.

Meanwhile, GM's PEG ratio is currently 0.61. 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. GM's industry had an average PEG ratio of 0.86 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.

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