In the latest trading session, General Motors Company (GM) closed at $33.39, marking a -0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.54%.
Prior to today's trading, shares of the company had lost 12.23% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 4.16% and the S&P 500's loss of 1.68% in that time.
Investors will be hoping for strength from General Motors Company as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $43.38 billion, up 3.55% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for General Motors Company. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. General Motors Company is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that General Motors Company has a Forward P/E ratio of 4.41 right now. Its industry sports an average Forward P/E of 10.34, so we one might conclude that General Motors Company is trading at a discount comparatively.
Also, we should mention that GM has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.97 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
