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Valued at a market cap of $46.4 billion, General Motors Company (GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts and is best known for manufacturing automobile brands like Chevrolet and GMC. Based in Detroit, Michigan, the company also provides software-enabled services and subscriptions.
Shares of this multinational automotive company have underperformed the broader market over the past 52 weeks. GM has gained nearly 14% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17.8%. But in 2024, things are looking up - GM’s stock has gained 16.9%, surpassing SPX’s 11.1% rise on a YTD basis.
Zooming in further, GM has outperformed the S&P 500 EW Consumer Discretionary Invesco ETF’s (RSPD) marginal decline over the past 52 weeks and a 3.1% fall on a YTD basis.
Despite exceeding earnings and sales expectations, GM shares fell 6.4% after its Q2 report on Jul. 23, primarily due to unexpected losses in China and a slowdown in EV plans despite sector growth. Additionally, the indefinite suspension of its self-driving car, Origin, resulted in a nearly $600 million charge for the company.
For the current fiscal year, ending in December, analysts expect GM's EPS to grow 29.4% year over year to $9.94. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and two “Strong Sells.”
The configuration is slightly less bullish than three months ago, with only one “Strong Sell” rating on the stock.
On Jul. 24, Citi (C) analyst Itay Michaeli raised GM's price target to $98 – the street-high price target and maintained a “Buy” rating, citing confidence in its 2025 outlook despite a 6% share drop post-Q2, with improving free cash flow and upcoming catalysts. This implies a potential upside of 133.7% from the current price levels.
The mean price target of $56.81 represents a premium of 35.4% to GM's current levels.
On the date of publication, Sohini Mondal 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.
