Back to top

Image: Bigstock

General Motors Company (GM) Hit a 52 Week High, Can the Run Continue?

Read MoreHide Full Article

Shares of General Motors (GM - Free Report) have been strong performers lately, with the stock up 5.3% over the past month. The stock hit a new 52-week high of $85.18 in the previous session. General Motors has gained 4.7% since the start of the year compared to the 11.3% gain for the Zacks Auto-Tires-Trucks sector and the 13.4% return for the Zacks Automotive - Domestic industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 21, 2025, General Motors reported EPS of $2.8 versus consensus estimate of $2.28 while it beat the consensus revenue estimate by 9.76%.

For the current fiscal year, General Motors is expected to post earnings of $11.65 per share on $184.48 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $12.77 per share on $184.27 in revenues. This represents a year-over-year change of 12.81% and -0.12%, 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 is due for a pullback from this level.

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 C and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 7.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.3X. On a trailing cash flow basis, the stock currently trades at 3.7X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.69. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making General Motors an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, General Motors currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 passes the test. Thus, it seems as though General Motors shares could have potential in the weeks and months to come.

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 REV Group, Inc. (REVG - Free Report) . REVG has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.

Earnings were strong last quarter. REV Group, Inc. beat our consensus estimate by 6.41%, and for the current fiscal year, REVG is expected to post earnings of $3.72 per share on revenue of $2.66 billion.

Shares of REV Group, Inc. have gained 10.8% over the past month, and currently trade at a forward P/E of 17.78X and a P/CF of 21.01X.

The Automotive - Domestic industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GM and REVG, even beyond their own solid fundamental situation.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


General Motors Company (GM) - free report >>

REV Group, Inc. (REVG) - free report >>

Published in