General Motors Company (GM) closed the most recent trading day at $33.02, moving +1.88% from the previous trading session. This change outpaced the S&P 500's 0.99% gain on the day.
Coming into today, shares of the company had lost 0.22% in the past month. In that same time, the Auto-Tires-Trucks sector gained 8.63%, while the S&P 500 gained 0.42%.
Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. On that day, General Motors Company is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 43.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.7 billion, up 16.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.68 per share and revenue of $163.85 billion, which would represent changes of -11.99% and +4.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for General Motors Company. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 0.85% higher. General Motors Company is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, General Motors Company is currently trading at a Forward P/E ratio of 4.85. This represents a discount compared to its industry's average Forward P/E of 9.68.
Meanwhile, GM's PEG ratio is currently 0.49. 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 72, putting it in the top 29% 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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