General Motors (GM - Free Report) closed the most recent trading day at $32.37, moving -1.85% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow lost 2.91%, while the tech-heavy Nasdaq lost 2.21%.
Heading into today, shares of the automaker had lost 7.23% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 8.18% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 5, 2019. On that day, GM is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 27.88%. Meanwhile, our latest consensus estimate is calling for revenue of $36.72 billion, down 2.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.27 per share and revenue of $145.57 billion. These totals would mark changes of -5.29% and -2.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% higher. GM is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, GM currently has a Forward P/E ratio of 5.26. This represents a discount compared to its industry's average Forward P/E of 9.22.
Also, we should mention that GM has a PEG ratio of 0.62. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 11, putting it in the top 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.