General Motors (GM - Free Report) closed the most recent trading day at $33.45, moving -1.39% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 0.77%.
Coming into today, shares of the automaker had lost 7.73% in the past month. In that same time, the Auto-Tires-Trucks sector lost 8.48%, while the S&P 500 lost 9.35%.
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. In that report, analysts expect GM to post earnings of $1.15 per share. This would mark a year-over-year decline of 30.3%. Meanwhile, our latest consensus estimate is calling for revenue of $36.72 billion, down 2.65% from the prior-year quarter.
Any recent changes to analyst estimates for GM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 has moved 0.07% higher. GM currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, GM is holding a Forward P/E ratio of 5.41. For comparison, its industry has an average Forward P/E of 9.69, which means GM is trading at a discount to the group.
Meanwhile, GM's PEG ratio is currently 0.64. 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 1.09 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 24, which puts it in the top 9% 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.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.