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General Motors Company (GM) Dips More Than Broader Markets: What You Should Know

In the latest trading session, General Motors Company (GM) closed at $57.88, marking a -1.41% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%.

Coming into today, shares of the company had lost 0.94% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.75%, while the S&P 500 gained 5.72%.

GM will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2021. The company is expected to report EPS of $0.97, up 56.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.26 billion, up 1.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $135.56 billion, which would represent changes of +3.88% and +10.67%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GM. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. GM is currently a Zacks Rank #4 (Sell).

Investors should also note GM's current valuation metrics, including its Forward P/E ratio of 11.53. This valuation marks a discount compared to its industry's average Forward P/E of 17.12.

Investors should also note that GM has a PEG ratio of 1.17 right now. 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. GM's industry had an average PEG ratio of 2.5 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% 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.

To follow GM in the coming trading sessions, be sure to utilize Zacks.com.


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