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General Motors (GM) Declines More Than Market: Some Information for Investors

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General Motors (GM - Free Report) closed at $43.54 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.91%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the an automotive manufacturer had lost 6.87% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 11.31% and the S&P 500's loss of 12.13% in that time.

Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. The company is expected to report EPS of $2.63, up 0.38% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $42.47 billion, indicating a 1.26% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.51 per share and a revenue of $179.19 billion, representing changes of +8.58% and -4.41%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for General Motors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.51% higher within the past month. Currently, General Motors is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, General Motors is presently trading at a Forward P/E ratio of 3.84. This valuation marks a discount compared to its industry's average Forward P/E of 9.64.

It is also worth noting that GM currently has a PEG ratio of 0.61. 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. GM's industry had an average PEG ratio of 0.75 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 188, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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