In the latest trading session, General Motors (GM - Free Report) closed at $34.12, marking a -0.38% move from the previous day. This change outpaced the S&P 500's 0.55% loss on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Prior to today's trading, shares of the automaker had lost 0.38% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 1.07% and lagged the S&P 500's gain of 0.37% in that time.
GM will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2018. In that report, analysts expect GM to post earnings of $1.28 per share. This would mark a year-over-year decline of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $35.48 billion, up 5.52% from the prior-year quarter.
GM's full-year Zacks Consensus Estimates are calling for earnings of $5.95 per share and revenue of $145.57 billion. These results would represent year-over-year changes of -10.12% and -2.64%, respectively.
It is also important to note the recent changes to analyst estimates for GM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GM is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, GM currently has a Forward P/E ratio of 5.75. This valuation marks a discount compared to its industry's average Forward P/E of 12.51.
It is also worth noting that GM currently has a PEG ratio of 0.7. 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. The Automotive - Domestic was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.