General Motors Company (GM) closed at $35.85 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.
Heading into today, shares of the company had gained 9.49% over the past month, lagging the Auto-Tires-Trucks sector's gain of 15.63% and outpacing the S&P 500's gain of 3.44% in that time.
Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. On that day, General Motors Company is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 43.86%. Our most recent consensus estimate is calling for quarterly revenue of $41.7 billion, up 16.62% from the year-ago period.
GM's full-year Zacks Consensus Estimates are calling for earnings of $6.70 per share and revenue of $163.85 billion. These results would represent year-over-year changes of -11.73% and +4.54%, respectively.
It is also important to note the recent changes to analyst estimates for General Motors Company. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. General Motors Company is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, General Motors Company is currently trading at a Forward P/E ratio of 5.4. This represents a discount compared to its industry's average Forward P/E of 10.66.
We can also see that GM currently has a PEG ratio of 0.55. 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 1.28 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 74, which puts it in the top 30% 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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