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General Motors Company (GM) Outpaces Stock Market Gains: What You Should Know

·3 min read

General Motors Company (GM) closed the most recent trading day at $40.50, moving +0.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 0.05%.

Heading into today, shares of the company had gained 5.69% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 3.89% and the S&P 500's loss of 3.79% in that time.

Wall Street will be looking for positivity from General Motors Company as it approaches its next earnings report date. In that report, analysts expect General Motors Company to post earnings of $2.04 per share. This would mark year-over-year growth of 34.21%. Our most recent consensus estimate is calling for quarterly revenue of $42.31 billion, up 58.01% 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 $154.24 billion. These totals would mark changes of -3.96% and +21.45%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for General Motors Company. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. General Motors Company currently has a Zacks Rank of #3 (Hold).

Digging into valuation, General Motors Company currently has a Forward P/E ratio of 5.9. This represents a discount compared to its industry's average Forward P/E of 11.26.

It is also worth noting that GM currently has a PEG ratio of 0.6. 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 0.85 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 67, which puts it in the top 27% 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.

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


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