General Motors Company (GM) closed the most recent trading day at $37.38, moving -0.8% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Coming into today, shares of the company had lost 4% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.84%, while the S&P 500 lost 10.24%.
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 $2.04 per share, which would represent year-over-year growth of 34.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.31 billion, up 58.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.79 per share and revenue of $154.24 billion. These totals would mark changes of -3.96% and +21.45%, respectively, from last year.
Any recent changes to analyst estimates for General Motors Company should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. General Motors Company is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Motors Company has a Forward P/E ratio of 5.55 right now. For comparison, its industry has an average Forward P/E of 10.73, which means General Motors Company is trading at a discount to the group.
Investors should also note that GM has a PEG ratio of 0.56 right now. 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 industry currently had an average PEG ratio of 0.8 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 95, putting it in the top 38% 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.
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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