Core Viewpoint - General Motors (GM) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, influenced by institutional investors [4][6]. - Rising earnings estimates for GM suggest an improvement in the company's underlying business, likely leading to increased stock prices as investors respond positively [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - GM's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for GM - For the fiscal year ending December 2025, GM is expected to earn $10.06 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.7% over the past three months [8].
All You Need to Know About General Motors (GM) Rating Upgrade to Strong Buy