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There has been a lot of negative press surrounding the microchip shortage out there. It’s wreaking all sorts of havoc. One of the hardest hit industries has been the automotive industry. Production delays and factory shut-downs are beginning to cut into profits. Already, manufacturers have warned their dealerships about the upcoming lack of supply. For some dealerships, the drought is expected to last throughout the summer.
It came as a welcome surprise to me this morning that General Motors (GM - Free Report) is in the good graces of our Zacks Rank. I am naming it the Bull of the Day due its recent upgrade to a Zacks Rank #1 (Strong Buy).General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.
Not only does General Motors currently enjoy our highest Zacks Rank, but the stock also has a Zacks Value Style Score of A, Growth of B, and Momentum of F to help it round out with a VGM Composite Score of A. The reason for the favorable Zacks Rank is the series of upside earnings estimate revisions coming from analysts. Over the last thirty days, four analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up the current year Zacks Consensus Estimate from $5.09 to $5.29 while next year’s number is up from $6.18 to $6.56.
The growth in both sales and earnings has returned to the giant auto manufacturer. Current year earnings growth is slated to come in at 7.96%, while next year that number is expected to swell to 24.15%. Revenue growth is equally as good, if not better. This year’s 10.1% revenue growth outpaces earnings growth. Next year, sales are expected to continue the double-digit pace, coming in at 10.03% to the upside.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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Bull of the Day: General Motors (GM)
There has been a lot of negative press surrounding the microchip shortage out there. It’s wreaking all sorts of havoc. One of the hardest hit industries has been the automotive industry. Production delays and factory shut-downs are beginning to cut into profits. Already, manufacturers have warned their dealerships about the upcoming lack of supply. For some dealerships, the drought is expected to last throughout the summer.
It came as a welcome surprise to me this morning that General Motors (GM - Free Report) is in the good graces of our Zacks Rank. I am naming it the Bull of the Day due its recent upgrade to a Zacks Rank #1 (Strong Buy).General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.
Not only does General Motors currently enjoy our highest Zacks Rank, but the stock also has a Zacks Value Style Score of A, Growth of B, and Momentum of F to help it round out with a VGM Composite Score of A. The reason for the favorable Zacks Rank is the series of upside earnings estimate revisions coming from analysts. Over the last thirty days, four analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up the current year Zacks Consensus Estimate from $5.09 to $5.29 while next year’s number is up from $6.18 to $6.56.
General Motors Company Price and Consensus
General Motors Company price-consensus-chart | General Motors Company Quote
The growth in both sales and earnings has returned to the giant auto manufacturer. Current year earnings growth is slated to come in at 7.96%, while next year that number is expected to swell to 24.15%. Revenue growth is equally as good, if not better. This year’s 10.1% revenue growth outpaces earnings growth. Next year, sales are expected to continue the double-digit pace, coming in at 10.03% to the upside.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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