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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 (GM - Free Report) ? Shares have been on the move with the stock up 17.2% over the past month. The stock hit a new 52-week high of $91.15 in the previous session. General Motors has gained 11% since the start of the year compared to the -19.3% move for the Zacks Auto-Tires-Trucks sector and the -23.9% return for the Zacks Automotive - Domestic industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 21, 2026, General Motors reported EPS of $3.57 versus consensus estimate of $3.13.

For the current fiscal year, General Motors is expected to post earnings of $13.27 per share on $185.68 in revenues. This represents a 25.19% change in EPS on a 0.36% change in revenues. For the next fiscal year, the company is expected to earn $14.65 per share on $190.74 in revenues. This represents a year-over-year change of 10.41% and 2.73%, respectively.

Valuation Metrics

Though General Motors has recently hit a 52-week high, what is next for General Motors? 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 these give investors a variety of ways to comb 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 B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 6.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.3X. On a trailing cash flow basis, the stock currently trades at 3.3X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 0.41. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, General Motors currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

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 have a bit more room to run in the near term.

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 Polaris Inc. (PII - Free Report) . PII has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.

Earnings were strong last quarter. Polaris Inc. beat our consensus estimate by 155.84%, and for the current fiscal year, PII is expected to post earnings of $1.76 per share on revenue of $7.26 billion.

Shares of Polaris Inc. have gained 4.6% over the past month, and currently trade at a forward P/E of 40.77X and a P/CF of 14.08X.

The Automotive - Domestic industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GM and PII, even beyond their own solid fundamental situation.

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