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General Motors (GM) Laps the Stock Market: Here's Why

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The most recent trading session ended with General Motors (GM - Free Report) standing at $47.52, reflecting a +1.39% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.03% for the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.2%.

The an automotive manufacturer's stock has climbed by 2.43% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 1.96% and the S&P 500's gain of 1.54%.

The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.54, reflecting a 11.4% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $44.93 billion, showing a 1.81% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.95 per share and a revenue of $177.15 billion, demonstrating changes of +29.56% and +3.09%, respectively, from the preceding year.

Any recent changes to analyst estimates for General Motors should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. General Motors is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note General Motors's current valuation metrics, including its Forward P/E ratio of 4.71. For comparison, its industry has an average Forward P/E of 13.36, which means General Motors is trading at a discount to the group.

Also, we should mention that GM has a PEG ratio of 0.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.43 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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