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Headquartered in Detroit, Michigan, General Motors Company (GM) is a leading force in the automotive industry with a market cap of $56 billion. The company specializes in designing, manufacturing, and selling various vehicles, including cars, trucks, and electric vehicles, under well-known brands like Chevrolet, GMC, Cadillac, and Buick.
GM has significantly outperformed the broader market over the past year. The stock has gained 82% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024, the stock is up 41.9%, compared to SPX's 20.1% gains on a YTD basis.
Zooming in further, GM also outperformed the Consumer Discretionary Select Sector SPDR Fund (XLY). The exchange-traded fund has gained 30% over the past 52 weeks.
On Oct. 22, General Motors shares surged nearly 10% after the company reported a strong Q3 profit of $3 billion, driven by stable U.S. vehicle prices and increased revenue despite lower sales volume. The company’s adjusted EPS of $2.96 surpassed the Wall Street forecasts of $2.49, while its revenue of $48.8 billion topped Wall Street's expectations of $44 billion. General Motors anticipates full-year EPS to be between $10 and $10.50.
For the current fiscal year, ending in December, analysts expect GM’s EPS to grow 34.6% year over year to $10.34. The company’s earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 25 analysts covering GM stock, the consensus rating is a “Moderate Buy.” That’s based on 11 "Strong Buy" ratings, one "Moderate Buy," 10 "Holds," and three "Strong Sells."
This configuration is less bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Oct. 23, Wedbush analyst Daniel Ives maintained a ‘Buy’ rating on General Motors, with a price target of $60, which indicates a 4.6% upside from the current levels.
The mean price target of $59.62 represents a 17.7% premium to GM’s current price levels. The Street-high price target of $98 suggests an upside potential of 92.3%.
On the date of publication, Rashmi Kumari 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.
