In the latest close session, General Motors (GM) was down 2.37% at $83.76. This change lagged the S&P 500's 0.48% loss on the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
Shares of the an automotive manufacturer have depreciated by 3.98% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 5.5%, and the S&P 500's loss of 0.97%.
Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company is expected to report EPS of $3.37, up 20.36% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $48.22 billion, reflecting a 0.77% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $13.31 per share and a revenue of $185.7 billion, demonstrating changes of +25.57% and +0.37%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for General Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. General Motors presently features a Zacks Rank of #3 (Hold).
Digging into valuation, General Motors currently has a Forward P/E ratio of 6.45. For comparison, its industry has an average Forward P/E of 18.13, which means General Motors is trading at a discount to the group.
It's also important to note that GM currently trades at a PEG ratio of 0.48. 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 1.13 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).