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General Motors Company (GM) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of General Motors Company (GM - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $42.89 in the previous session. General Motors Company has gained 19.3% since the start of the year compared to the -6.4% move for the Zacks Auto-Tires-Trucks sector and the -23.2% return for the Zacks Automotive - Domestic industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, General Motors reported EPS of $1.24 versus consensus estimate of $1.12 while it beat the consensus revenue estimate by 5.4%.
For the current fiscal year, General Motors is expected to post earnings of $9 per share on $174.98 billion in revenues. This represents a 17.19% change in EPS on a 1.83% change in revenues. For the next fiscal year, the company is expected to earn $9.13 per share on $175.94 billion in revenues. This represents a year-over-year change of 1.37% and 0.55%, respectively.
Valuation Metrics
General Motors may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
General Motors has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 4.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 2.2X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 0.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, General Motors currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if General Motors fits the bill. Thus, it seems as though General Motors shares could still be poised for more gains ahead.
How Does GM Stack Up to the Competition?
Shares of GM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PACCAR Inc. (PCAR - Free Report) . PCAR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. PACCAR Inc. beat our consensus estimate by 22.73%, and for the current fiscal year, PCAR is expected to post earnings of $8.13 per share on revenue of $32.25 billion.
Shares of PACCAR Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 14.93X and a P/CF of 10.64X.
The Automotive - Domestic industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GM and PCAR, even beyond their own solid fundamental situation.
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General Motors Company (GM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of General Motors Company (GM - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $42.89 in the previous session. General Motors Company has gained 19.3% since the start of the year compared to the -6.4% move for the Zacks Auto-Tires-Trucks sector and the -23.2% return for the Zacks Automotive - Domestic industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, General Motors reported EPS of $1.24 versus consensus estimate of $1.12 while it beat the consensus revenue estimate by 5.4%.
For the current fiscal year, General Motors is expected to post earnings of $9 per share on $174.98 billion in revenues. This represents a 17.19% change in EPS on a 1.83% change in revenues. For the next fiscal year, the company is expected to earn $9.13 per share on $175.94 billion in revenues. This represents a year-over-year change of 1.37% and 0.55%, respectively.
Valuation Metrics
General Motors may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
General Motors has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 4.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 2.2X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 0.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, General Motors currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if General Motors fits the bill. Thus, it seems as though General Motors shares could still be poised for more gains ahead.
How Does GM Stack Up to the Competition?
Shares of GM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PACCAR Inc. (PCAR - Free Report) . PCAR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. PACCAR Inc. beat our consensus estimate by 22.73%, and for the current fiscal year, PCAR is expected to post earnings of $8.13 per share on revenue of $32.25 billion.
Shares of PACCAR Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 14.93X and a P/CF of 10.64X.
The Automotive - Domestic industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GM and PCAR, even beyond their own solid fundamental situation.