General Motors Company (GM) Gains But Lags Market: What You Should Know
General Motors Company (GM) closed the most recent trading day at $59.30, moving +0.92% from the previous trading session. This move lagged the S&P 500's daily gain of 1.4%.
Coming into today, shares of the company had gained 3.6% in the past month. In that same time, the Auto-Tires-Trucks sector gained 7.7%, while the S&P 500 gained 1.07%.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. In that report, analysts expect GM to post earnings of $0.63 per share. This would mark year-over-year growth of 226%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.89 per share and revenue of $136.5 billion. These totals would mark changes of +20.2% and +11.45%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GM. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 11.45% higher. GM is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, GM is holding a Forward P/E ratio of 9.97. This represents a discount compared to its industry's average Forward P/E of 15.
Meanwhile, GM's PEG ratio is currently 1.01. 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 1.26 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 94, putting it in the top 38% 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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