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General Motors Company (GM) Stock Drops Despite Market Gains: Important Facts to Note

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General Motors Company (GM - Free Report) closed at $36.08 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.

Coming into today, shares of the company had gained 25.06% in the past month. In that same time, the Auto-Tires-Trucks sector gained 5.89%, while the S&P 500 gained 4.89%.

Market participants will be closely following the financial results of General Motors Company in its upcoming release. The company plans to announce its earnings on January 30, 2024. The company is predicted to post an EPS of $1.06, indicating a 50% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.69 billion, down 7.94% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $168.6 billion. These totals would mark changes of -1.45% and +7.57%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for General Motors Company. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.84% upward. General Motors Company presently features a Zacks Rank of #3 (Hold).

In terms of valuation, General Motors Company is currently trading at a Forward P/E ratio of 4.83. This denotes a discount relative to the industry's average Forward P/E of 10.32.

It is also worth noting that GM currently has a PEG ratio of 0.61. 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 was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 31% of all industries, numbering over 250.

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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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