General Motors (GM) Gains As Market Dips: What You Should Know

Zacks Equity Research

General Motors (GM) closed the most recent trading day at $36.96, moving +0.11% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.

Coming into today, shares of the automaker had gained 5.1% in the past month. In that same time, the Auto-Tires-Trucks sector gained 3.99%, while the S&P 500 gained 3.07%.

Investors will be hoping for strength from GM as it approaches its next earnings release. The company is expected to report EPS of $1.42, down 21.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.56 billion, down 3.28% from the year-ago period.

GM's full-year Zacks Consensus Estimates are calling for earnings of $6.64 per share and revenue of $145.86 billion. These results would represent year-over-year changes of +1.53% and -0.81%, respectively.

Investors might also notice recent changes to analyst estimates for GM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% lower. GM is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, GM is holding a Forward P/E ratio of 5.56. This valuation marks a discount compared to its industry's average Forward P/E of 11.09.

Meanwhile, GM's PEG ratio is currently 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GM's industry had an average PEG ratio of 1.26 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 47, putting it in the top 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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