General Motors (GM) closed at $38.47 in the latest trading session, marking a +0.03% move from the prior day. This change outpaced the S&P 500’s 0.15% loss on the day. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the automaker had gained 14.98% in the past month. In that same time, the Auto-Tires-Trucks sector gained 7.79%, while the S&P 500 gained 6.55%.
Wall Street will be looking for positivity from GM as it approaches its next earnings report date. This is expected to be February 6, 2019. The company is expected to report EPS of $1.21, down 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37 billion, down 1.9% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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.
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 7.32% higher. GM is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that GM has a Forward P/E ratio of 6.15 right now. This represents a discount compared to its industry’s average Forward P/E of 10.3.
Meanwhile, GM’s PEG ratio is currently 0.73. 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 industry currently had an average PEG ratio of 1.3 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment