General Motors (GM) shares ended the last trading session 7.2% higher at $48.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.9% loss over the past four weeks.
General Motors shares have gained following the Trump administration's decision to postpone tariffs on automakers for one month, provided their vehicles meet the United States-Mexico-Canada Agreement requirements. This development is particularly beneficial for automakers caught in the trade dispute. Investors had anticipated potential disruptions to auto supply chains, as the tariffs would have increased the cost of raw materials, components and finished vehicles. While the delay doesn't eliminate the issue, it does offer additional time for adjustments and preparations for the next steps.
This an automotive manufacturer is expected to post quarterly earnings of $2.70 per share in its upcoming report, which represents a year-over-year change of +3.1%. Revenues are expected to be $42.7 billion, down 0.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For General Motors, the consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
General Motors is part of the Zacks Automotive - Domestic industry. Polaris Inc (PII), another stock in the same industry, closed the last trading session 0.8% higher at $41.23. PII has returned -10.5% in the past month.
Polaris Inc's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.80. Compared to the company's year-ago EPS, this represents a change of -447.8%. Polaris Inc currently boasts a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
