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General Motors (GM) Exceeds Market Returns: Some Facts to Consider
GMGM(US:GM) ZACKSยท2025-07-02 22:46

Group 1: Stock Performance - General Motors (GM) closed at $52.68, marking a +1.25% move from the prior day, outperforming the S&P 500's daily gain of 0.48% [1] - GM's stock has risen by 6.05% in the past month, while the Auto-Tires-Trucks sector has lost 7.77% and the S&P 500 has gained 5.13% [1] Group 2: Upcoming Earnings Disclosure - GM's earnings report is set to be unveiled on July 22, 2025, with an expected EPS of $2.44, indicating a 20.26% decline compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $45.34 billion, down 5.48% from the year-ago period [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates for GM are calling for earnings of $9.3 per share and revenue of $177.54 billion, representing year-over-year changes of -12.26% and -5.29%, respectively [3] - Recent changes to analyst estimates reflect the latest near-term business trends, with positive alterations indicating analyst optimism regarding business and profitability [3] Group 4: Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a track record of superior performance, with 1 stocks contributing an average annual return of +25% since 1988 [5] - GM currently has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate shifting 0.09% downward over the past month [5] Group 5: Valuation Metrics - GM is currently trading at a Forward P/E ratio of 5.6, which is a discount compared to the industry average Forward P/E of 11.81 [6] - GM has a PEG ratio of 1.4, while the Automotive - Domestic industry has an average PEG ratio of 1.2 [7] Group 6: Industry Ranking - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 213, placing it in the bottom 14% of all 250+ industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]