Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. The key question now is: What could be the stock's future direction?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. During this period, the Zacks Automotive - Domestic industry, which General Motors Company falls in, has gained 24.9%.

Over the past month, shares of this company have returned +12.4%, compared to the Zacks S&P 500 composite's +4.2% change. So, you might want to look at some of the facts that could shape the stock's performance in the near term. General Motors Company ( GM Quick Quote GM - Free Report) has been one of the most searched-for stocks on lately.

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