General Motors (GM) Rises Higher Than Market: Key Facts

In the latest close session, General Motors (GM) was up +2.77% at $87.22. The stock's change was more than the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 1.4%.

The an automotive manufacturer's stock has dropped by 4.81% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 7.67% and the S&P 500's gain of 2.46%.

Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.37, indicating a 20.36% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $48.22 billion, indicating a 0.77% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.29 per share and a revenue of $185.87 billion, signifying shifts of +25.38% and +0.46%, respectively, from the last year.

Any recent changes to analyst estimates for General Motors should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. As of now, General Motors holds a Zacks Rank of #3 (Hold).

Looking at valuation, General Motors is presently trading at a Forward P/E ratio of 6.38. For comparison, its industry has an average Forward P/E of 18.64, which means General Motors is trading at a discount to the group.

It's also important to note that GM currently trades at a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.11 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 46, putting it in the top 19% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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