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

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

In the latest close session, General Motors (GM) was up +1.86% at $83.22. This change outpaced the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.

Prior to today's trading, shares of the an automotive manufacturer had gained 3.81% lagged the Auto-Tires-Trucks sector's gain of 6.49% and the S&P 500's gain of 4.59%.

The upcoming earnings release of General Motors will be of great interest to investors. The company's earnings report is expected 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.

GM's full-year Zacks Consensus Estimates are calling for earnings of $12.85 per share and revenue of $185.27 billion. These results would represent year-over-year changes of +21.23% and +0.13%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for General Motors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% increase. General Motors is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, General Motors is presently being traded at a Forward P/E ratio of 6.36. This represents a discount compared to its industry average Forward P/E of 19.23.

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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 0.95.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 18% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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