General Motors Company (GM) Outpaces Stock Market Gains: What You Should Know
General Motors Company (GM) closed at $58.21 in the latest trading session, marking a +1.18% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%.
Heading into today, shares of the company had gained 1.64% over the past month, lagging the Auto-Tires-Trucks sector's gain of 4.68% and the S&P 500's gain of 6.99% in that time.
Investors will be hoping for strength from GM as it approaches its next earnings release, which is expected to be May 5, 2021. The company is expected to report EPS of $1.02, up 64.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.26 billion, up 1.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.03 per share and revenue of $135.08 billion. These totals would mark changes of +2.65% and +10.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% lower. GM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 11.43. This valuation marks a discount compared to its industry's average Forward P/E of 16.7.
We can also see that GM currently has a PEG ratio of 1.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.64 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 91, putting it in the top 36% 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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