Monday, October 7, 2019Three weeks into a workers’ strike at Detroit-based General Motors (GM - Free Report) , there appears to be no end in sight. Some 49,000 employees in the United Auto Workers (UAW) union continue to carry picket signs, as negotiations between the union’s office and the automaker’s board appear to have hit a snag.
Proposing a new deal whereby job security for the Detroit plant workforce is more seriously considered in the next 4-year workers’ contract — as well as a more generous sharing of company profits, which are expected to fetch $1.79 per share in the company’s Q3 earnings report (due out on Tuesday, October 29th) — is where the current impasse lies. Reportedly, GM came back with a counter-proposal union officials said resembled an earlier, already rejected offer. Things are now reported to “have taken a turn for the worse,” according to UAW Vice President Terry Dittes.
Workers are concerned the company may pull up stakes and invest in a new plant south of the border. Currently, 22% of GM autos sold in the U.S. are built in Mexico. For their part, GM is interested in cutting costs to levels of those they see with foreign automakers who have built plants in cheaper areas in the U.S. south. The UAW is currently supplying $250 per week to striking workers as the impasse continues, roughly 20% of average normal pay.
GM is currently a Zacks Rank #2 (Buy)-rated company, with a Value-Growth-Momentum grade of B. Over the past 4 quarters, the company has beaten estimates all 4 times at an average of 27.7% above expectations. In fact, the company has only missed estimates twice in the last 5 years — most recently in Q2 2018. Earnings of $1.79 per share would represent a year-over-year drop of 4.3%, whereas expected revenues of $36.65 billion would demonstrate 2.4% growth.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Monday, October 7, 2019
Three weeks into a workers’ strike at Detroit-based General Motors (GM - Free Report) , there appears to be no end in sight. Some 49,000 employees in the United Auto Workers (UAW) union continue to carry picket signs, as negotiations between the union’s office and the automaker’s board appear to have hit a snag.
Proposing a new deal whereby job security for the Detroit plant workforce is more seriously considered in the next 4-year workers’ contract — as well as a more generous sharing of company profits, which are expected to fetch $1.79 per share in the company’s Q3 earnings report (due out on Tuesday, October 29th) — is where the current impasse lies. Reportedly, GM came back with a counter-proposal union officials said resembled an earlier, already rejected offer. Things are now reported to “have taken a turn for the worse,” according to UAW Vice President Terry Dittes.
Workers are concerned the company may pull up stakes and invest in a new plant south of the border. Currently, 22% of GM autos sold in the U.S. are built in Mexico. For their part, GM is interested in cutting costs to levels of those they see with foreign automakers who have built plants in cheaper areas in the U.S. south. The UAW is currently supplying $250 per week to striking workers as the impasse continues, roughly 20% of average normal pay.
GM is currently a Zacks Rank #2 (Buy)-rated company, with a Value-Growth-Momentum grade of B. Over the past 4 quarters, the company has beaten estimates all 4 times at an average of 27.7% above expectations. In fact, the company has only missed estimates twice in the last 5 years — most recently in Q2 2018. Earnings of $1.79 per share would represent a year-over-year drop of 4.3%, whereas expected revenues of $36.65 billion would demonstrate 2.4% growth.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on GM - FREE
Get the latest research report on QQQ - FREE
Get the latest research report on SPY - FREE
Get the latest research report on DIA - FREE