General Motors Company (GM) Stock Sinks As Market Gains: What You Should Know
General Motors Company (GM) closed at $54.13 in the latest trading session, marking a -0.22% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 10, 2021. The company is expected to report EPS of $1.62, up 3140% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.90 billion, up 19.7% from the year-ago period.
Investors should also note any recent changes to analyst estimates for GM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 2.87% higher. GM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GM currently has a Forward P/E ratio of 9.16. Its industry sports an average Forward P/E of 16.78, so we one might conclude that GM is trading at a discount comparatively.
We can also see that GM currently has a PEG ratio of 0.93. 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. The Automotive - Domestic was holding an average PEG ratio of 1.98 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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