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General Motors (GM) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with General Motors (GM - Free Report) standing at $53.36, reflecting a -0.56% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.61% gain on the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.31%.

The the stock of an automotive manufacturer has fallen by 0.07% in the past month, lagging the Auto-Tires-Trucks sector's gain of 22.95% and the S&P 500's gain of 5.79%.

Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 28, 2025. The company is predicted to post an EPS of $1.74, indicating a 40.32% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.66 billion, up 1.58% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.35 per share and revenue of $180.02 billion, which would represent changes of +34.77% and +4.76%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for General Motors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. At present, General Motors boasts a Zacks Rank of #2 (Buy).

Looking at its valuation, General Motors is holding a Forward P/E ratio of 5.19. This represents a discount compared to its industry's average Forward P/E of 12.7.

Meanwhile, GM's PEG ratio is currently 0.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GM's industry had an average PEG ratio of 1.9 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 130, putting it in the bottom 49% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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