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General Motors (GM) Gains As Market Dips: What You Should Know

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General Motors (GM - Free Report) ended the recent trading session at $44.88, demonstrating a +0.09% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.93% loss on the day. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 1.53%.

The an automotive manufacturer's stock has dropped by 9.92% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 8.85% and the S&P 500's gain of 2.17%.

The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. The company is scheduled to release its earnings on October 22, 2024. The company's earnings per share (EPS) are projected to be $2.54, reflecting a 11.4% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $44.93 billion, reflecting a 1.81% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.95 per share and a revenue of $177.15 billion, representing changes of +29.56% and +3.09%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for General Motors. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.07% higher. Currently, General Motors is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, General Motors is currently exchanging hands at a Forward P/E ratio of 4.51. This expresses a discount compared to the average Forward P/E of 13.21 of its industry.

One should further note that GM currently holds a PEG ratio of 0.53. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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