Here's Why General Motors (GM) Fell More Than Broader Market

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Here's Why General Motors (GM) Fell More Than Broader Market

General Motors (GM) closed the most recent trading day at $82.51, moving -1.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.57%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 1.15%.

Shares of the an automotive manufacturer have appreciated by 15.01% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 0.94%, and the S&P 500's gain of 2.14%.

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 July 21, 2026. It is anticipated that the company will report an EPS of $3.12, marking a 23.32% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $46.65 billion, indicating a 0.99% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.85 per share and a revenue of $185.27 billion, representing changes of +21.23% and +0.13%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for General Motors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. General Motors currently has a Zacks Rank of #3 (Hold).

Digging into valuation, General Motors currently has a Forward P/E ratio of 6.54. This denotes a discount relative to the industry average Forward P/E of 19.68.

Meanwhile, GM's PEG ratio is currently 0.42. 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 industry had an average PEG ratio of 0.95 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% 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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This article originally published on Zacks Investment Research (zacks.com).

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