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Why General Motors (GM) Outpaced the Stock Market Today
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In the latest trading session, General Motors (GM - Free Report) closed at $76.05, marking a +1.01% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.31%.
Shares of the an automotive manufacturer have appreciated by 9.37% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 2.15%, and the S&P 500's gain of 1.33%.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is predicted to post an EPS of $2.21, indicating a 15.1% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $44.79 billion, down 6.13% from the prior-year quarter.
GM's full-year Zacks Consensus Estimates are calling for earnings of $10.32 per share and revenue of $184.57 billion. These results would represent year-over-year changes of -2.64% and -1.54%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for General Motors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. General Motors presently features a Zacks Rank of #2 (Buy).
In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 7.3. This signifies a discount in comparison to the average Forward P/E of 16.14 for its industry.
Meanwhile, GM's PEG ratio is currently 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.9.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Why General Motors (GM) Outpaced the Stock Market Today
In the latest trading session, General Motors (GM - Free Report) closed at $76.05, marking a +1.01% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.31%.
Shares of the an automotive manufacturer have appreciated by 9.37% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 2.15%, and the S&P 500's gain of 1.33%.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is predicted to post an EPS of $2.21, indicating a 15.1% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $44.79 billion, down 6.13% from the prior-year quarter.
GM's full-year Zacks Consensus Estimates are calling for earnings of $10.32 per share and revenue of $184.57 billion. These results would represent year-over-year changes of -2.64% and -1.54%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for General Motors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. General Motors presently features a Zacks Rank of #2 (Buy).
In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 7.3. This signifies a discount in comparison to the average Forward P/E of 16.14 for its industry.
Meanwhile, GM's PEG ratio is currently 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.9.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.