General Motors (GM) Is ​​Making Advances While the Market Is Falling: Some Information for Investors

The latest trading session ended with General Motors (GM) at $52.74, representing a shift of +0.06% from the closing price of the previous trading day. The stock’s move was larger than the S&P 500’s daily loss of 0.3%. Meanwhile, the Dow lost 0.35% and the Nasdaq, a tech-heavy index, lost 0.25%.

Year-to-date, shares of an automaker had lost 8.58% over the past month. During the same period, the Passenger Tires-Trucks sector gained 13.11%, while the S&P 500 gained 1.09%.

Analysts and investors will be keeping a close eye on General Motors’ performance in its upcoming earnings release. The company’s earnings report is scheduled to be released on January 28, 2025. The company’s earnings per share (EPS) are expected to be $1.74, up 40.32% from the year-ago quarter. At the same time, our most recent consensus estimate is calling for revenue of $43.66 billion, up 1.58% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.35 per share and revenue of $180.02 billion, representing changes of +34.77% and +4.76%, respectively, from the prior year would correspond.

Investors should also note recent revisions to analyst estimates for General Motors. These recent revisions tend to reflect the evolving nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% generated. Over the past 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, General Motors is ranked #2 (Buy) by Zacks.

Valuation is also important, so investors should note that General Motors currently has a Forward P/E ratio of 5.09. This valuation represents a discount compared to its industry’s average Forward P/E of 12.22.

We should also mention that GM has a PEG ratio of 0.4. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the PEG ratio in the domestic automotive industry averaged 1.87.

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