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Why General Motors Company (GM) Outpaced the Stock Market Today

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General Motors Company (GM - Free Report) ended the recent trading session at $30.06, demonstrating a +1.35% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.

The the stock of company has fallen by 12.64% in the past month, lagging the Auto-Tires-Trucks sector's loss of 4.23% and the S&P 500's loss of 3%.

The upcoming earnings release of General Motors Company will be of great interest to investors. The company's earnings report is expected on October 24, 2023. It is anticipated that the company will report an EPS of $1.88, marking a 16.44% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $43.3 billion, up 3.36% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.57 per share and a revenue of $171.47 billion, representing changes of -0.26% and +9.4%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for General Motors Company. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.25% fall in the Zacks Consensus EPS estimate. General Motors Company is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, General Motors Company is presently being traded at a Forward P/E ratio of 3.92. This represents a discount compared to its industry's average Forward P/E of 9.58.

We can additionally observe that GM currently boasts a PEG ratio of 0.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GM's industry had an average PEG ratio of 1.17 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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