In the latest trading session, General Motors (GM) closed at $34.66, marking a -1.25% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.08%. Elsewhere, the Dow lost 2.11%, while the tech-heavy Nasdaq lost 2.27%.
Heading into today, shares of the automaker had lost 1.27% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 3.01% and the S&P 500's loss of 3.6% in that time.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 5, 2019. The company is expected to report EPS of $1.20, down 27.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.72 billion, down 2.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.26 per share and revenue of $145.57 billion. These totals would mark changes of -5.44% and -2.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GM. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.57% higher. GM is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, GM is holding a Forward P/E ratio of 5.6. Its industry sports an average Forward P/E of 9.33, so we one might conclude that GM is trading at a discount comparatively.
We can also see that GM currently has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.19 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 17, putting it in the top 7% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
