GM stock price (NYSE:GM) rests on a Zacks Rank of #3 (Hold) as the Zacks Consensus EPS estimate remained stagnant in the past month.
General Motors Company (NYSE:GM), which completed the most recent trading session at $40.62, moved up +0.22% from the day before. This adjustment fell short of the day’s 0.34% rise for the S&P 500. The Nasdaq, a heavily weighted tech index, fell by 0.05% while the Dow rose by 0.1%.
Before today’s trade, GM stock price had increased by 3.95% in the previous month. In that time, this has outperformed the S&P 500’s loss of 7.95% and the Auto-Tires-Trucks sector’s loss of 6.27%.
As General Motors Company gets closer to releasing its next earnings report, investors will be looking for strength. EPS of $2.04, up 34.21% from the same quarter last year, is anticipated by the company. Net sales are expected to reach $42.31 billion, up 58.01% from the same time last year, according to the Zacks Consensus Estimate for revenue.
Our Zacks Consensus Estimates anticipate annual earnings of $6.79 per share and revenue of $154.24 billion, changes of -3.96% and +21.45%, respectively, from the preceding year. It’s crucial to take note of the most recent adjustments to analyst forecasts for GM stock price. These updates assist in highlighting how quickly business trends in the near future can change. Positive estimate revisions, therefore, represent analyst optimism over the company’s operations and profitability.
Our investigation leads us to conclude that these estimate adjustments are a direct result of near-term stock movements. In order to capitalize on this, we created the Zacks Rank, a unique methodology that gives an actionable rating system by taking these estimate adjustments into consideration.
GM stock price ranking
The #1 stocks in the Zacks Rank methodology, which ranges from #1 (Strong Buy) to #5 (Strong Sell), have produced an average yearly return of +25% since 1988, according to an exceptional outside-audited track record of outperformance. The Zacks Consensus EPS estimate stayed unchanged over the previous month. The Zacks Rank for General Motors Company is #3 right now (Hold).
The current valuation measures for General Motors Company (NYSE:GM), such as its Forward P/E ratio of 5.97, should be taken into consideration by investors. Compared to the Forward P/E of 11.05% for its sector, this is a bargain.
In the meantime, GM’s PEG ratio is currently 0.61. The main distinction between this popular statistic and the well-known P/E ratio is that the PEG ratio additionally considers the company’s anticipated earnings growth rate. As of yesterday’s closure, the average PEG ratio for GM’s sector was 0.86.
The sector Auto-Tires-Trucks includes the Domestic Automotive industry. With a Zacks Industry Rank of 80, this category is ranked in the top 32% of all 250+ industries. The average Zacks Rank of the individual stocks within each industry group is used by the Zacks Industry Rank to assess the health of each industry group. According to our analysis, the top 50% of graded industries outperform the bottom 50% by a proportion of two to one.
On Zacks.com, you can learn more about these indicators and many others.
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Author Jowi Kwasu