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Valued at a market cap of $49.2 billion, General Motors Company (GM) is accelerating its transition to an all-electric future with its Ultium Drive system and a lineup of new EV models. Based in Detroit, Michigan, the company designs, manufactures, and sells vehicles under brands like Chevrolet, Buick, GMC, and Cadillac while also expanding into autonomous and software-enabled services.
Shares of the leading global automaker have outperformed the broader market over the past 52 weeks. GM has returned 29.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.7%. However, shares of GM are down 7.2% on a YTD basis, lagging behind SPX’s 2.7% gain.
Focusing more closely, General Motors has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.4% return over the past 52 weeks and a 3.5% YTD gain.
Despite reporting stronger-than-expected Q4 results with adjusted EPS of $1.92 and revenue of $47.7 billion, GM shares tumbled 8.9% on Jan. 28 due to concerns over its 2025 guidance. Analysts were cautious about GM's forecasted adjusted EPS of $11 to $12 and net income of $11.2 billion to $12.5 billion, fearing that it left little room for errors. The company also didn't account for potential regulatory changes, such as a 25% tariff on imports from Canada and Mexico or adjustments to the EV tax credit. Lastly, while GM has aggressively repurchased shares, reducing its share count by over 25% in three years, management provided no updates on future capital return plans, adding to investor uncertainty.
For the current fiscal year, ending in December 2025, analysts expect GM’s EPS to grow 7.6% year-over-year to $11.41. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.”
This configuration is slightly less bullish than three months ago, with 11 “Strong Buy” ratings on the stock.
On Jan. 30, Barclays analyst Dan Levy reiterated a “Buy” rating on GM and assigned a price target of $70.
As of writing, GM is trading below the mean price target of $57.96. The Street-high price target of $85, implies a potential upside of 71.9% from the current price levels.
