Trade-Ideas: General Motors (GM) Is Today's Pre-Market Laggard Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified General Motors (GM) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified General Motors as such a stock due to the following factors:
- GM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $876.5 million.
- GM traded 39,860 shares today in the pre-market hours as of 7:35 AM.
- GM is down 4.2% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GM with the Ticky from Trade-Ideas. See the FREE profile for GM NOW at Trade-IdeasMore details on GM: General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The stock currently has a dividend yield of 3.4%. GM has a PE ratio of 14.9. Currently there are 10 analysts that rate General Motors a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for General Motors has been 25.3 million shares per day over the past 30 days. General has a market cap of $49.0 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.76 and a short float of 7.7% with 2.87 days to cover. Shares are down 12.4% year-to-date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates General Motors as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 14.1%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, GM's share price has jumped by 31.85%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
- Net operating cash flow has increased to $3,860.00 million or 14.09% when compared to the same quarter last year. Despite an increase in cash flow, GENERAL MOTORS CO's cash flow growth rate is still lower than the industry average growth rate of 30.53%.
- GENERAL MOTORS CO's earnings per share declined by 49.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $2.93 versus $4.62 in the prior year. This year, the market expects an improvement in earnings ($3.37 versus $2.93).
- You can view the full General Motors Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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