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General Motors Company (GM) Stock Sinks As Market Gains: What You Should Know

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General Motors Company (GM - Free Report) closed the most recent trading day at $36.66, moving -0.95% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.

Prior to today's trading, shares of the company had gained 14.65% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 22.45% and outpaced the S&P 500's gain of 4.31% in that time.

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 $1.64 per share, which would represent year-over-year growth of 43.86%. Our most recent consensus estimate is calling for quarterly revenue of $41.7 billion, up 16.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.84 per share and revenue of $163.85 billion. These totals would mark changes of -9.88% and +4.54%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for General Motors Company. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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 0.01% higher. General Motors Company currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, General Motors Company is holding a Forward P/E ratio of 5.41. Its industry sports an average Forward P/E of 10.87, so we one might conclude that General Motors Company is trading at a discount comparatively.

Investors should also note that GM has a PEG ratio of 0.55 right now. 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. The Automotive - Domestic was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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