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General Motors (GM) Trades Flat On The Day: What You Should Know

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General Motors (GM - Free Report) closed the most recent trading day at $33.67, making no change from the previous trading session. This change trading in line with S&P 500. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.06%.

Prior to today's trading, shares of the automaker had lost 7.4% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 2.54% and the S&P 500's gain of 0.78% in that time.

GM will be looking to display strength as it nears its next earnings release, which is expected to be October 23, 2018. On that day, GM is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $35.48 billion, up 5.52% from the prior-year quarter.

GM's full-year Zacks Consensus Estimates are calling for earnings of $5.95 per share and revenue of $145.57 billion. These results would represent year-over-year changes of -10.12% and -2.64%, respectively.

Investors might also notice recent changes to analyst estimates for GM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GM is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, GM currently has a Forward P/E ratio of 5.66. For comparison, its industry has an average Forward P/E of 12.66, which means GM is trading at a discount to the group.

Investors should also note that GM has a PEG ratio of 0.69 right now. 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. The Automotive - Domestic industry currently had an average PEG ratio of 1.26 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 180, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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