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

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In the latest trading session, General Motors Company (GM - Free Report) closed at $33.34, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.

Heading into today, shares of the company had gained 2.51% over the past month, lagging the Auto-Tires-Trucks sector's gain of 10.32% and outpacing the S&P 500's gain of 0.38% in that time.

Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. The company is expected to report EPS of $1.88, down 16.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.3 billion, up 3.36% from the year-ago period.

GM's full-year Zacks Consensus Estimates are calling for earnings of $7.59 per share and revenue of $171.18 billion. These results would represent year-over-year changes of 0% and +9.22%, respectively.

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.

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.

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 has moved 0.12% lower. General Motors Company is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that General Motors Company has a Forward P/E ratio of 4.48 right now. This represents a discount compared to its industry's average Forward P/E of 10.13.

Meanwhile, GM's PEG ratio is currently 0.45. 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. The Automotive - Domestic industry currently had an average PEG ratio of 1.22 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 103, putting it in the top 41% 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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