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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 $56.89, marking a -1.91% move from the previous day. This change lagged the S&P 500's 0.34% gain on the day.

Coming into today, shares of the company had gained 12.99% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.78%, while the S&P 500 lost 0.12%.

GM will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2021. In that report, analysts expect GM to post earnings of $0.66 per share. This would mark a year-over-year decline of 76.68%. 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 $5.96 per share and revenue of $133.3 billion. These totals would mark changes of +21.63% and +8.83%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for GM. Recent revisions tend to reflect the latest near-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.

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 3.82% lower. GM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GM has a Forward P/E ratio of 9.72 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.82.

It is also worth noting that GM currently has a PEG ratio of 0.99. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.29 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 179, which puts it in the bottom 30% 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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