Valued at a market cap of $47.8 billion, General Motors Company (GM) is a multinational automotive manufacturing company. Based in Detroit, Michigan, the company designs, builds, and sells trucks, crossovers, cars, and automobile parts and also provides software-enabled services and subscriptions worldwide.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and General Motors fits this criterion perfectly. The company operates through four segments: GM North America, GM International, Cruise, and GM Financial. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.
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However, the detroit automaker declined 21.5% from its 52-week high of $61.24. Over the last three months, GM’s shares have dipped 8.8%, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 5.1% loss during the same period.
Longer term, GM has fallen 9.7% on a YTD basis, lagging behind DOWI’s 1.5% decline. However, shares of General Motors have gained 21.7% over the past 52 weeks, outperforming the Dow Jones’ nearly 8.1% rise over the same time frame.
GM has been trading above its 50-day and 200-day moving averages since last year. However, the stock has fallen below its 50-day moving average since December 2024 and its 200-day moving average since February.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $1.92 and revenue of $47.7 billion, shares of GM dipped 8.9% on Jan. 28 due to several factors. While the company projected 2025 net income between $11.2 billion and $12.5 billion and adjusted EBIT of $13.7 billion to $15.7 billion (both above Wall Street estimates), this guidance did not account for potential policy changes, such as a repeal of EV tax credits and a 25% tariff on Canadian and Mexican imports, which could raise vehicle costs and hurt demand.
Lastly, management failed to update investors on its capital return plans, creating uncertainty about future share buybacks and dividends, further weighing on investor sentiment.
Nevertheless, in comparison, rival Ford Motor Company (F) underperformed GM over the past 52 weeks, declining 18.2%. But, shares of Ford Motor surged marginally on a YTD basis, outpacing GM.
Analysts are cautiously optimistic about GM’s prospects despite its outperformance compared to broader markets over the past year. With a consensus “Moderate Buy” rating from 24 analysts, the stock is currently trading below the mean price target of $59.92.
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