General Motors (GM) closed the most recent trading day at $31.93, moving -1.27% from the previous trading session. This move lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the automaker had lost 7.86% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 10.92% and lagging the S&P 500's loss of 3.08% in that time.
GM will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2018. The company is expected to report EPS of $1.24, down 6.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.18 billion, up 1.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.96 per share and revenue of $145.99 billion, which would represent changes of -9.97% and -2.36%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. GM is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 5.42. This valuation marks a discount compared to its industry's average Forward P/E of 11.39.
We can also see that GM currently has a PEG ratio of 0.66. 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 1.24 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.