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General Motors (GM) Stock Sinks As Market Gains: What You Should Know
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General Motors (GM - Free Report) closed at $37.67 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the automaker had gained 17.86% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 9.82% and the S&P 500's gain of 9.27% in that time.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 6, 2019. The company is expected to report EPS of $1.21, down 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.31 billion, down 1.07% from the year-ago period.
Any recent changes to analyst estimates for GM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. The Zacks Consensus EPS estimate has moved 7.32% higher within the past month. GM currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 6.1. This valuation marks a discount compared to its industry's average Forward P/E of 10.15.
Meanwhile, GM's PEG ratio is currently 0.72. 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. GM's industry had an average PEG ratio of 1.27 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 42, putting it in the top 17% 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.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.
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General Motors (GM) Stock Sinks As Market Gains: What You Should Know
General Motors (GM - Free Report) closed at $37.67 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the automaker had gained 17.86% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 9.82% and the S&P 500's gain of 9.27% in that time.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 6, 2019. The company is expected to report EPS of $1.21, down 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.31 billion, down 1.07% from the year-ago period.
Any recent changes to analyst estimates for GM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. The Zacks Consensus EPS estimate has moved 7.32% higher within the past month. GM currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 6.1. This valuation marks a discount compared to its industry's average Forward P/E of 10.15.
Meanwhile, GM's PEG ratio is currently 0.72. 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. GM's industry had an average PEG ratio of 1.27 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 42, putting it in the top 17% 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.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.