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General Motors (GM) Laps the Stock Market: Here's Why
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In the latest trading session, General Motors (GM - Free Report) closed at $83.95, marking a +2.13% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Shares of the an automotive manufacturer witnessed a loss of 6.52% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 3.06%, and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of General Motors in its upcoming release. It is anticipated that the company will report an EPS of $3.41, marking a 21.79% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $48.42 billion, down 0.35% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.4 per share and revenue of $185.67 billion, indicating changes of +26.42% and +0.35%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for General Motors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. General Motors is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, General Motors is presently trading at a Forward P/E ratio of 6.13. Its industry sports an average Forward P/E of 16.81, so one might conclude that General Motors is trading at a discount comparatively.
It is also worth noting that GM currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GM's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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General Motors (GM) Laps the Stock Market: Here's Why
In the latest trading session, General Motors (GM - Free Report) closed at $83.95, marking a +2.13% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Shares of the an automotive manufacturer witnessed a loss of 6.52% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 3.06%, and the S&P 500's gain of 0.1%.
Market participants will be closely following the financial results of General Motors in its upcoming release. It is anticipated that the company will report an EPS of $3.41, marking a 21.79% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $48.42 billion, down 0.35% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.4 per share and revenue of $185.67 billion, indicating changes of +26.42% and +0.35%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for General Motors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. General Motors is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, General Motors is presently trading at a Forward P/E ratio of 6.13. Its industry sports an average Forward P/E of 16.81, so one might conclude that General Motors is trading at a discount comparatively.
It is also worth noting that GM currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GM's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.