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

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General Motors Company (GM) closed the most recent trading day at $58.96, moving -0.25% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day.

Heading into today, shares of the company had lost 6.96% over the past month, lagging the Auto-Tires-Trucks sector's gain of 4.68% and the S&P 500's gain of 3.52% in that time.

Investors will be hoping for strength from GM as it approaches its next earnings release. In that report, analysts expect GM to post earnings of $1.01 per share. This would mark year-over-year growth of 302%.

GM's full-year Zacks Consensus Estimates are calling for earnings of $6.12 per share and revenue of $136.47 billion. These results would represent year-over-year changes of +24.9% and +11.42%, respectively.

It is also important to note the recent changes to analyst estimates for GM. 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. The Zacks Consensus EPS estimate has moved 15.8% higher within the past month. GM currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, GM currently has a Forward P/E ratio of 9.63. This valuation marks a discount compared to its industry's average Forward P/E of 15.47.

It is also worth noting that GM currently has a PEG ratio of 0.98. 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. The Automotive - Domestic industry currently had an average PEG ratio of 1.25 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 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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