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General Motors (GM) Gains But Lags Market: What You Should Know

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General Motors (GM - Free Report) closed the most recent trading day at $35.84, moving +0.31% from the previous trading session. This move lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.

Prior to today's trading, shares of the automaker had lost 7.27% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 7.74% and lagged the S&P 500's loss of 4.58% in that time.

Investors will be hoping for strength from GM as it approaches its next earnings release. The company is expected to report EPS of $1.44, down 20.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.81 billion, down 2.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.67 per share and revenue of $145.86 billion, which would represent changes of +1.99% and -0.81%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GM. These recent revisions tend to reflect the evolving nature of short-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. GM currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GM has a Forward P/E ratio of 5.36 right now. For comparison, its industry has an average Forward P/E of 10.72, which means GM is trading at a discount to the group.

It is also worth noting that GM currently has a PEG ratio of 0.6. 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 1.22 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 166, putting it in the bottom 36% 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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