General Motors Co (GM): Today's Featured Automotive Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

General Motors ( GM) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole was unchanged today. By the end of trading, General Motors fell 92 cents (-3.2%) to $27.75 on heavy volume. Throughout the day, 19.2 million shares of General Motors exchanged hands as compared to its average daily volume of 10.3 million shares. The stock ranged in price between $27.67-$29.36 after having opened the day at $28.74 as compared to the previous trading day's close of $28.67. Other companies within the Automotive industry that declined today were: Tata Motors ( TTM), down 4.9%, Navistar International ( NAV), down 1.6%, SORL Auto Parts ( SORL), down 1.5%, and Toyota Motor ( TM), down 1.5%.
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General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. General Motors has a market cap of $44.71 billion and is part of the consumer goods sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are down 1% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate General Motors a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates General Motors as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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