General Motors (GM - Free Report) closed at $36.20 in the latest trading session, marking a +0.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the automaker had lost 1.5% over the past month, lagging the Auto-Tires-Trucks sector's loss of 1.06% and the S&P 500's gain of 0.34% in that time.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. On that day, GM is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 20.44%. Meanwhile, our latest consensus estimate is calling for revenue of $35.81 billion, down 2.6% from the prior-year quarter.
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.
Any recent changes to analyst estimates for GM should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. GM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 5.4. For comparison, its industry has an average Forward P/E of 10.95, which means GM is trading at a discount to the group.
Meanwhile, GM's PEG ratio is currently 0.61. 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. GM's industry had an average PEG ratio of 1.24 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.