Back to top

Image: Bigstock

General Motors Company (GM) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

General Motors Company (GM - Free Report) ended the recent trading session at $36.05, demonstrating a +0.36% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.57% for the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.

Shares of the company have appreciated by 8.62% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 3.47% and the S&P 500's gain of 4%.

Analysts and investors alike will be keeping a close eye on the performance of General Motors Company in its upcoming earnings disclosure. The company's earnings report is set to go public on January 30, 2024. The company's upcoming EPS is projected at $1.06, signifying a 50% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $39.69 billion, showing a 7.94% drop compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for General Motors Company. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.96% lower. General Motors Company is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, General Motors Company is currently being traded at a Forward P/E ratio of 4.67. This expresses a discount compared to the average Forward P/E of 11.91 of its industry.

It is also worth noting that GM currently has a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.31.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GM in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


General Motors Company (GM) - free report >>

Published in