GM stock is cheap not because the market isn’t paying attention, but because it is. Fundamentally, General Motors stock does have a nice set up going into earnings. The stock has been rangebound for years now, but the upper end of that range generally includes prices in the low $40’s against a current price below $36.
Full Answer
Why is General Motors stock trading lower Tuesday morning?
Shares of General Motors (NYSE:GM) were trading lower on Tuesday morning, after a prominent Wall Street auto analyst cut his bank's rating on the company's stock.
Is General Motors stock too cheap?
And General Motors stock remains cheap, at just 5.5x 2020 consensus earnings-per-share estimates. But it’s simply difficult to pound the table for GM stock at the moment. Recent earnings in the industry highlight where investor attention is focused.
Is GM stock still cheap after next week's Q3?
GM stock is cheap, but it has been cheap for a while, and is likely to stay that way after next week's Q3 report General Motors (NYSE: GM) stock has shown signs of life heading into earnings next Tuesday. There has been some good news along the way that has helped General Motors stock rally nearly 6% over the last twelve sessions.
Is General Motors'stock undervalued at $50?
The results of a fight between the company and hedge fund Greenlight Capital, which has proposed to split the automaker's stock and change its board of directors, was to be announced. (Photo by Bill Pugliano/Getty Images) General Motors’ stock (NYSE: GM) at the current price of $50 seems underpriced compared to Trefis’ GM’s Valuation of $69.
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Why is GM stock dropping?
Amid a broad market sell-off that also pushed Ford Motor and Chrysler-parent Stellantis to new 52-week lows, GM's stock closed at $32.28 a share, down by 7.8%. Shares of GM have declined about 45% this year, as fears of a recession grow and investors question whether the automaker's most profitable days are behind it.
Is GM a good stock to buy now?
Likewise, General Motors had a strong 2021 as well. The company generated an adjusted EBIT of $14.3 billion during the year, which was even better than Ford's results, although one should note that GM also sells way more vehicles than Ford per year. For the current year, expectations are high as well.
Is GM a buy 2022?
At the current market price of about $39 per share, GM stock trades at just about 5x the mid-point of projected 2022 earnings. Growth is also likely to pick up a bit this year, with revenue rising by about 20% per our estimates.
Is GM stock expected to go up?
Analyst Price Target on GM Based on 16 Wall Street analysts offering 12 month price targets for General Motors in the last 3 months. The average price target is $56.36 with a high forecast of $87.00 and a low forecast of $42.00.
Is GM a buy hold or sell?
Is GM Stock A Buy, Sell, or Hold? GM is a Hold.
Is GM going out of business?
General Motors filed for bankruptcy early Monday, marking the end of an era for GM, as the troubled automaker now represents the largest bankruptcy in history. Once the world's largest automaker, now the ailing giant will be forced to close more than 10 plants and cut more than 20,000 jobs.
What is the target price for GM?
Stock Price TargetHigh$95.00Low$29.00Average$54.00Current Price$31.72
Is General Motors making money?
GM Revenue from Sales for the Nine Months Ending Sept. 30, 2021. Data obtained from GM's quarterly report from 2021....Major Drivers.GM's Full-Year 2020 EBITGMNAGMIGM Financial$9.10B(0.5)B$2.7B
Will GM pay dividends again?
No dividend GM plans to spend between about $9 billion and $10 billion a year in the medium term, including in 2022. “As we move forward, we will consider all opportunities to return excess capital to shareholders, but we will not reinstate a dividend at this time,” Barra said.
How much will GM stock be worth in 5 years?
Based on our forecasts, a long-term increase is expected, the "GM" stock price prognosis for 2027-07-09 is 56.079 USD. With a 5-year investment, the revenue is expected to be around +77.52%. Your current $100 investment may be up to $177.52 in 2027. Get It Now!
How much debt is GM?
110.60 BTotal AssetsMar 2022Total Debt110.60 BTotal Liabilities178.90 BTotal Shareholder's Equity59.74 BBook Value Per Share39.837 more rows
Does GM pay a dividend?
In 2019, Ford and GM each paid out roughly $2.4 billion in dividends.
What happened
Shares of General Motors ( GM -0.83% ) were trading lower on Thursday, amid a broader decline in consumer discretionary stocks triggered by investor worries about rising COVID-19 cases in U.S. states that have reopened.
So what
Traders and investors were reacting on Thursday to reminders that U.S. coronavirus cases are still rising, and that the pandemic has not yet passed. There are now over 2 million cases, and -- notably -- COVID-19 hospitalizations have been rising in some of the states that were aggressive about reopening, including California, Florida, and Texas.
NYSE: GM
With dealer supplies running low, GM is scrambling to make as many pickups as it can. Image source: General Motors.
Now what
There's a related concern for GM and its U.S. rivals that auto investors should watch carefully: factories.
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How much is GM worth?
GM's stake is now worth $19 billion, up from $11.9 billion, JP Morgan analyst Ryan Brinkman figures. That equates to about $13 per share in GM stock. Apple, Alphabet ( GOOGL )-unit Waymo, Uber ( UBER ), Ford and Tesla are among a large field of well-funded competitors in the autonomous-vehicle market.
How much does GM spend on electric cars?
On June 16, GM said it plans to spend $35 billion on electric and self-driving vehicles. The 30% boost over the prior $27-billion total partly reflects two additional EV battery plants. GM's revved-up investment plans track with its aim to leverage massive scale and capital efficiency as a competitive advantage.
Why is GM recalled?
On Friday, GM announced that it's recalling 69,000 Chevy Bolts due to fire risk. But this bad news will be quickly forgotten as GM's transformation ramps up this fall. X.
Is GM stock moving sideways?
Since its last big breakout in January, GM stock has essentially moved sideways for the past six months. As long as the chip crunch proves manageable, that may just be the calm before GM revs up its three-motor Hummer EV this fall.
Is GM's transition risky?
GM's transition isn't without risk, even apart from the chip shortage. As GM funds itself mainly through ICE profits, pure-play EV automakers, including Tesla and a host of Chinese rivals, have built up big EV war chests by issuing stock.
Is GM a solid state battery?
GM's transition isn't without risk, even apart from the chip shortage. As GM funds itself mainly through ICE profits, pure-play EV automakers, including Tesla and a host of Chinese rivals, have built up big EV war chests by issuing stock. Meanwhile, Toyota ( TM) and EV battery startup QuantumScape ( QS) have highlighted their separate progress toward a solid-state EV battery that has potential to offer faster charging, longer distance and greater safety.
Expectations for GM Earnings
Fundamentally, General Motors stock does have a nice set up going into earnings. The stock has been rangebound for years now, but the upper end of that range generally includes prices in the low $40’s against a current price below $36. Interestingly, there has been heavy buying in Nov.
Reports Elsewhere Raise Concerns for GM Stock
Meanwhile, a bottom-line beat doesn’t even guarantee near-term upside. Rival Ford Motor Company (NYSE: F) handily beat earnings estimates on Wednesday afternoon. The stock promptly fell 6% in trading Thursday thanks to downside guidance.
What was Ford's profit in 2019?
In 2016, the company posted a gross profit of $16.8 billion with a margin of 11.1 percent. However, in 2019, its gross profit fell to $12.8 billion and its margin shrank to 8.3 percent. Source: Ford. Article continues below advertisement.
When did Ford start selling Model T?
When it launched the Model T in 1908, the car was the most popular of its time. However, now, over a century later, the company's stock is trading below $10. Why is Ford stock so low and can it rebound? Ford stock is much cheaper than many of the newly listed EV (electric vehicle) stocks, and its market cap is lower than NIO’s.
Is Tesla's market cap bigger than all other automakers?
All legacy automakers that make primarily internal combustion engine cars have fallen out of favor with markets, and Tesla’s market cap is now larger than that of all leading automakers put together. The valuations EV stocks are enjoying are unheard of in the traditional automotive industry.
Is Ford's international operations slowing down?
Ford’s international operations are slowing and it has huge debt. North America is Ford's most profitable market, but even in the U.S., most of its profits seem to come from the F-150. Internationally, Ford isn't as strong and is seeing losses.
Is Ford losing market share?
Ford is losing market share, and its margins are shrinking. Ford has lost market share, and sometimes deliberately—the company ditched sedans in the U.S., as they have narrow margins. It has also been losing market share in China, the world’s largest automotive market. Furthermore, Ford’s gross profit margins and absolute gross profit have been ...
