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

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General Motors Company (GM - Free Report) closed the most recent trading day at $49.37, making no change from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.08%.

Heading into today, shares of the company had gained 2.47% over the past month, lagging the Auto-Tires-Trucks sector's gain of 3.69% and outpacing the S&P 500's loss of 1.81% in that time.

Wall Street will be looking for positivity from GM as it approaches its next earnings report date. In that report, analysts expect GM to post earnings of $0.97 per share. This would mark a year-over-year decline of 65.72%. Meanwhile, our latest consensus estimate is calling for revenue of $36.14 billion, up 1.85% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.16 per share and revenue of $136.58 billion. These totals would mark changes of +25.71% and +11.51%, respectively, from last year.

Any recent changes to analyst estimates for GM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.69% lower. GM is currently a Zacks Rank #3 (Hold).

Digging into valuation, GM currently has a Forward P/E ratio of 8.02. Its industry sports an average Forward P/E of 13.95, so we one might conclude that GM is trading at a discount comparatively.

Investors should also note that GM has a PEG ratio of 0.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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