General Motors Company (GM), headquartered in Detroit, Michigan, designs, builds and sells trucks, crossovers, cars, and automobile parts and provides software-enabled services and subscriptions worldwide. With a market cap of $51.38 billion, the company produces, sells, and services its cars, trucks, and parts under four core brands: Chevrolet, Buick, GMC, and Cadillac. General Motors has made an impressive journey, from facing bankruptcy in 2009 to becoming one of the world's best-managed automakers.
Shares of this auto giant have outperformed the broader market considerably over the past year. GM has gained 40.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.3%. In 2024 alone, GM stock is up 26.6%, surpassing the SPX’s 11.3% rise on a YTD basis.
Zooming in further, GM’s outperformance looks more pronounced compared to SPDR S&P Kenso Smart Mobility ETF (HAIL). The exchange-traded fund has gained only 2.6% over the past year, significantly lagging GM’s performance. Moreover, the stock’s high-double-digit gains on a YTD basis compare to the ETF’s loss over the same time frame.
GM shares surged more than 4% following the company's Q1 earnings report, which surpassed Wall Street's expectations in terms of revenue and profit. Also, GM raised its full-year adjusted earnings forecast to between $12.5 billion and $14.5 billion, or $9 to $10 per share, up from the previous range of $12 billion to $14 billion, or $8.50 to $9.50 per share.
For the current fiscal year, ending in December, analysts expect GM’s EPS to grow 22.4% to $9.40 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering GM stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 11 suggesting a “Strong Buy.”
Recently, RBC Capital maintained a “Buy” rating on GM stock with a price target of $56, implying a potential upside of 23.1% from current levels.
The mean price target of $52.60 represents a 15.6% premium to GM’s current price levels. The Street-high price target of $96 suggests an ambitious upside potential of 111%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
