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General Motors (GM) Stock Moves -0.51%: What You Should Know

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In the latest trading session, General Motors (GM - Free Report) closed at $38.86, marking a -0.51% move from the previous day. This change was narrower than the S&P 500's 0.61% loss on the day. Elsewhere, the Dow lost 0.72%, while the tech-heavy Nasdaq lost 0.56%.

Heading into today, shares of the automaker had gained 1.14% over the past month, lagging the Auto-Tires-Trucks sector's gain of 4.06% and the S&P 500's gain of 5.68% 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 April 30, 2019. On that day, GM is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 25.17%. Meanwhile, our latest consensus estimate is calling for revenue of $35.95 billion, down 0.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.48 per share and revenue of $148.02 billion. These totals would mark changes of -0.92% and +0.66%, 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GM is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, GM is currently trading at a Forward P/E ratio of 6.02. This represents a discount compared to its industry's average Forward P/E of 10.73.

It is also worth noting that GM currently has a PEG ratio of 0.68. 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. The Automotive - Domestic was holding an average PEG ratio of 1.26 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 100, which puts it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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