In the latest market close, General Motors (GM) reached $51.77, with a +0.78% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.26%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.
Heading into today, shares of the an automotive manufacturer had lost 3.78% over the past month, lagging the Auto-Tires-Trucks sector's gain of 3.89% and the S&P 500's loss of 2.82% in that time.
Market participants will be closely following the financial results of General Motors in its upcoming release. The company plans to announce its earnings on January 28, 2025. The company is expected to report EPS of $1.74, up 40.32% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $43.71 billion, up 1.71% from the year-ago period.
Any recent changes to analyst estimates for General Motors should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% higher. General Motors is currently a Zacks Rank #2 (Buy).
With respect to valuation, General Motors is currently being traded at a Forward P/E ratio of 4.84. This represents a discount compared to its industry's average Forward P/E of 13.32.
Investors should also note that GM has a PEG ratio of 0.38 right now. 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 1.64.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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