We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, General Motors (GM - Free Report) closed at $38.23, marking a -0.7% move from the previous day. This move lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.78%.
Heading into today, shares of the automaker had gained 9.41% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 6.6% and the S&P 500's gain of 5.97% in that time.
GM will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2019. The company is expected to report EPS of $1.42, down 21.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $35.71 billion, down 2.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $145.86 billion, which would represent changes of +0.46% and -0.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.83% lower. GM is currently a Zacks Rank #3 (Hold).
In terms of valuation, GM is currently trading at a Forward P/E ratio of 5.86. This valuation marks a discount compared to its industry's average Forward P/E of 11.09.
It is also worth noting that GM currently has a PEG ratio of 0.66. 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 1.25 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors (GM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, General Motors (GM - Free Report) closed at $38.23, marking a -0.7% move from the previous day. This move lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.78%.
Heading into today, shares of the automaker had gained 9.41% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 6.6% and the S&P 500's gain of 5.97% in that time.
GM will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2019. The company is expected to report EPS of $1.42, down 21.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $35.71 billion, down 2.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $145.86 billion, which would represent changes of +0.46% and -0.81%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.83% lower. GM is currently a Zacks Rank #3 (Hold).
In terms of valuation, GM is currently trading at a Forward P/E ratio of 5.86. This valuation marks a discount compared to its industry's average Forward P/E of 11.09.
It is also worth noting that GM currently has a PEG ratio of 0.66. 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 1.25 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.