In the latest trading session, General Motors (GM - Free Report) closed at $32.31, marking a -0.89% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 2.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the automaker had lost 4.29% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 10.57% and lagging the S&P 500's loss of 3.01% 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. On that day, GM is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 6.06%. Meanwhile, our latest consensus estimate is calling for revenue of $34.18 billion, up 1.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.96 per share and revenue of $145.99 billion. These totals would mark changes of -9.97% and -2.36%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. GM is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, GM is holding a Forward P/E ratio of 5.47. Its industry sports an average Forward P/E of 11.6, so we one might conclude that GM is trading at a discount comparatively.
Also, we should mention that GM has a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.