Why General Motors (GM) Dipped More Than Broader Market Today

General Motors (GM) closed the latest trading day at $53.91, indicating a -0.57% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.

The the stock of an automotive manufacturer has risen by 0.07% in the past month, leading the Auto-Tires-Trucks sector's loss of 3.67% and undershooting the S&P 500's gain of 2.52%.

Analysts and investors alike will be keeping a close eye on the performance of General Motors in its upcoming earnings disclosure. The company's earnings report is set to go public on January 28, 2025. The company's earnings per share (EPS) are projected to be $1.75, reflecting a 41.13% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $43.84 billion, showing a 2% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for General Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. General Motors presently features a Zacks Rank of #2 (Buy).

Digging into valuation, General Motors currently has a Forward P/E ratio of 5.04. This denotes a discount relative to the industry's average Forward P/E of 14.11.

We can also see that GM currently has a PEG ratio of 0.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.