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General Motors Company (GM) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, General Motors Company (GM - Free Report) closed at $60.83, marking a -1.79% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.

Coming into today, shares of the company had gained 11.02% in the past month. In that same time, the Auto-Tires-Trucks sector gained 9.17%, while the S&P 500 gained 6.19%.

Wall Street will be looking for positivity from GM as it approaches its next earnings report date. The company is expected to report EPS of $0.97, up 56.45% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.09 per share and revenue of $135.56 billion. These totals would mark changes of +3.88% and +10.67%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GM currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GM has a Forward P/E ratio of 11.99 right now. This represents a discount compared to its industry's average Forward P/E of 17.42.

Investors should also note that GM has a PEG ratio of 1.22 right now. 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 2.34 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 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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