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General Motors (GM) Gains But Lags Market: What You Should Know
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The latest trading session saw General Motors (GM - Free Report) ending at $51.70, denoting a +1.49% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.
The an automotive manufacturer's stock has dropped by 0.41% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 10.85% and the S&P 500's loss of 3.31%.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is slated to reveal its earnings on January 28, 2025. On that day, General Motors is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 41.13%. Simultaneously, our latest consensus estimate expects the revenue to be $43.73 billion, showing a 1.75% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for General Motors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.94% increase. Right now, General Motors possesses a Zacks Rank of #2 (Buy).
With respect to valuation, General Motors is currently being traded at a Forward P/E ratio of 4.74. Its industry sports an average Forward P/E of 14.21, so one might conclude that General Motors is trading at a discount comparatively.
We can additionally observe that GM currently boasts a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.65.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.
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General Motors (GM) Gains But Lags Market: What You Should Know
The latest trading session saw General Motors (GM - Free Report) ending at $51.70, denoting a +1.49% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.
The an automotive manufacturer's stock has dropped by 0.41% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 10.85% and the S&P 500's loss of 3.31%.
The investment community will be paying close attention to the earnings performance of General Motors in its upcoming release. The company is slated to reveal its earnings on January 28, 2025. On that day, General Motors is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 41.13%. Simultaneously, our latest consensus estimate expects the revenue to be $43.73 billion, showing a 1.75% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for General Motors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.94% increase. Right now, General Motors possesses a Zacks Rank of #2 (Buy).
With respect to valuation, General Motors is currently being traded at a Forward P/E ratio of 4.74. Its industry sports an average Forward P/E of 14.21, so one might conclude that General Motors is trading at a discount comparatively.
We can additionally observe that GM currently boasts a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.65.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow GM in the coming trading sessions, be sure to utilize Zacks.com.