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Bull Of The Day: General Motors (GM)

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General Motors (GM - Free Report) is a Zacks Rank #1 (Strong Buy) that has a A for Value and D for Growth.  This stock automotive company has a great valuation and has been running hard since the most recent earnings beat.  Let’s explore more about this company in this Bull of The Day article.

Description

General Motors Co. engages in the designing, manufacturing, and selling of trucks, crossovers, cars, and automobile parts, and in providing software-enabled services and subscriptions. It operates through the following segments: GMNA, GMI, Cruise, and GM Financial. The company was founded by William C. Durant on September 16, 1908 and is headquartered in Detroit, MI.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For General Motors, I see four beats of the Zacks Consensus Estimate over the last year.  The average positive earnings surprise over the last year works out to be a positive 20%.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Following the most recent quarter estimates have trended higher.

The consensus estimate for the current quarter has increased from $1.87 to $2.02.

Next quarter has seen the consensus move from $1.76 to $2.21.

The full fiscal year 2024 estimate has moved from $7.74 to $9.00

Next year has moved from $7.55 to $9.13.

Valuation

The forward PE multiple for GM is 4.8x which is well below the average market multiple of about 18x. The price to book stands at 0.74x, which means the value oriented will be very interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes om at 0.3x.


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