Is GM Stock a Good Investment?

GM Investment Advice

To provide specific investment advice or recommendations on General Motors stock, we recommend investors consider the following general factors when evaluating General Motors. This will help you to make an informed decision on whether to include GM in one of your diversified portfolios:

Examine GM's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research GM's leadership team and their track record. Good management can help GM navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact GM's business and its evolving consumer preferences.
Compare GM's performance and market position to its competitors. Analyze how GM is positioned in terms of product offerings, innovation, and market share.
Check if GM pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about GM's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in General Motors stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if General Motors is a good investment.

Sell

Buy

Cautious Hold

Our investment recommendation module provides unbiased trade recommendations that can be used to complement current average analyst sentiment on General Motors. Our investment recommendation engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure General Motors is not overpriced, please check out all GM fundamentals, including its cash per share, price to earnings to growth, and the relationship between the gross profit and book value per share . Given that General Motors has a price to earning of 6.76 X, we strongly advise you to confirm General Motors market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine GM Stock

Researching GM's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.86. Some equities with similar Price to Book (P/B) outperform the market in the long run. General Motors recorded earning per share (EPS) of 9.37. The entity last dividend was issued on the 6th of December 2024. The firm had 2:1 split on the March 29, 1989.

To determine if GM is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding GM's research are outlined below:

	General Motors is unlikely to experience financial distress in the next 2 years
	Over 87.0% of the company shares are owned by institutional investors
	Latest headline from thelincolnianonline.com: General Motors EVP Rory Harvey Sells 8,919 Shares

GM Quarterly Accounts Payable

29.63 Billion

GM uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in General Motors. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to GM's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	30th of January 2024 Upcoming Quarterly Report	View
	23rd of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	30th of January 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact GM's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises GM's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-02-05	2019-12-31	0.01	0.05	0.04	400
2011-02-24	2010-12-31	0.46	0.52	0.06	13
2013-07-25	2013-06-30	0.75	0.84	0.09	12
2012-05-03	2012-03-31	0.85	0.94	0.09	10
2015-04-23	2015-03-31	0.97	0.86	-0.11	11
2013-05-02	2013-03-31	0.54	0.67	0.13	24
2022-02-01	2021-12-31	1.19	1.35	0.16	13
2012-08-02	2012-06-30	0.74	0.9	0.16	21

Know GM's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as GM is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading General Motors backward and forwards among themselves. GM's institutional investor refers to the entity that pools money to purchase GM's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Goldman Sachs Group Inc	2024-06-30	14.4 M
Bank Of America Corp	2024-06-30	14.3 M
Dimensional Fund Advisors, Inc.	2024-09-30	13.8 M
Amvescap Plc.	2024-06-30	13.8 M
Norges Bank	2024-06-30	13.6 M
Bank Of New York Mellon Corp	2024-06-30	13 M
Legal & General Group Plc	2024-06-30	11.3 M
Diamond Hill Capital Management Inc	2024-09-30	11.1 M
Capital Research Global Investors	2024-09-30	10.8 M
Blackrock Inc	2024-06-30	110.2 M
Vanguard Group Inc	2024-09-30	94.4 M

Note, although GM's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

GM's market capitalization trends

The company currently falls under 'Large-Cap' category with a market capitalization of 61.13 B.

Market Cap

37.7 Billion

GM's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.04	0.04
Return On Capital Employed	0.05	0.05
Return On Assets	0.04	0.06
Return On Equity	0.16	0.15

The company has Net Profit Margin (PM) of 0.06 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.08 %, which signifies that for every $100 of sales, it has a net operating income of $0.08.

Determining GM's profitability involves analyzing its financial statements and using various financial metrics to determine if GM is a good buy. For example, gross profit margin measures GM's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of GM's profitability and make more informed investment decisions.

Evaluate GM's management efficiency

General Motors has Return on Asset (ROA) of 0.027 % which means that for every $100 of assets, it generated a profit of $0.027. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1417 %, which means that it produced $0.1417 on every 100 dollars invested by current stockholders. GM's management efficiency ratios could be used to measure how well GM manages its routine affairs as well as how well it operates its assets and liabilities. At this time, GM's Return On Capital Employed is very stable compared to the past year. As of the 30th of November 2024, Return On Assets is likely to grow to 0.06, while Return On Tangible Assets are likely to drop 0.04. At this time, GM's Other Assets are very stable compared to the past year. As of the 30th of November 2024, Fixed Asset Turnover is likely to grow to 3.89, while Other Current Assets are likely to drop about 5.4 B.

	Last Reported	Projected for Next Year
Book Value Per Share	50.08	52.58
Tangible Book Value Per Share	46.51	48.84
Enterprise Value Over EBITDA	6.63	3.38
Price Book Value Ratio	0.76	0.94
Enterprise Value Multiple	6.63	3.38
Price Fair Value	0.76	0.94
Enterprise Value	22.3 B	19.8 B

General Motors has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.

Dividend Yield

0.0086

Forward Dividend Yield

0.0086

Forward Dividend Rate

0.48

Beta

1.414

Basic technical analysis of GM Stock

As of the 30th of November, GM retains the Risk Adjusted Performance of 0.0753, market risk adjusted performance of 0.1691, and Downside Deviation of 2.73. GM technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Please check out General Motors jensen alpha, as well as the relationship between the potential upside and skewness to decide if GM is priced fairly, providing market reflects its last-minute price of 55.59 per share. Given that General Motors has jensen alpha of 0.0425, we strongly advise you to confirm General Motors's regular market performance to make sure the company can sustain itself at a future point.

GM's Outstanding Corporate Bonds

GM issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. General Motors uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most GM bonds can be classified according to their maturity, which is the date when General Motors has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	GENERAL MTRS FINL Corp Bond US37045XBT28	View
	GENERAL MTRS FINL Corp Bond US37045XBQ88	View
	GENERAL MTRS FINL Corp Bond US37045XBG07	View
	GENERAL MTRS FINL Corp Bond US37045XAZ96	View
	GENERAL MTRS FINL Corp Bond US37045XAS53	View
	GM 6 09 JAN 28 Corp Bond US37045XEB82	View
	GM 605 10 OCT 25 Corp Bond US37045XDZ69	View
	GM 43 06 APR 29 Corp Bond US37045XDV55	View

View All GM Corporate Bonds

Understand GM's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing GM's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0753
	Market Risk Adjusted Performance	0.1691
	Mean Deviation	1.61
	Semi Deviation	2.36
	Downside Deviation	2.73
	Coefficient Of Variation	1118.52
	Standard Deviation	2.51
	Variance	6.31
	Information Ratio	0.0346
	Jensen Alpha	0.0425
	Total Risk Alpha	(0.20)
	Sortino Ratio	0.0319
	Treynor Ratio	0.1591
	Maximum Drawdown	18.8
	Value At Risk	(3.53)
	Potential Upside	3.74
	Downside Variance	7.45
	Semi Variance	5.59
	Expected Short fall	(1.57)
	Skewness	(0.02)
	Kurtosis	4.96

	Risk Adjusted Performance	0.0753
	Market Risk Adjusted Performance	0.1691
	Mean Deviation	1.61
	Semi Deviation	2.36
	Downside Deviation	2.73
	Coefficient Of Variation	1118.52
	Standard Deviation	2.51
	Variance	6.31
	Information Ratio	0.0346
	Jensen Alpha	0.0425
	Total Risk Alpha	(0.20)
	Sortino Ratio	0.0319
	Treynor Ratio	0.1591
	Maximum Drawdown	18.8
	Value At Risk	(3.53)
	Potential Upside	3.74
	Downside Variance	7.45
	Semi Variance	5.59
	Expected Short fall	(1.57)
	Skewness	(0.02)
	Kurtosis	4.96

Consider GM's intraday indicators

GM intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of GM stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	198116.0
	Daily Balance Of Power	0.0643
	Rate Of Daily Change	1.0
	Day Median Price	56.29
	Day Typical Price	56.06
	Price Action Indicator	(0.65)
	Period Momentum Indicator	0.09
	Relative Strength Index	73.73

GM Corporate Filings

F4	27th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	22nd of October 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F3	11th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify

GM time-series forecasting models is one of many GM's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary GM's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

GM Stock media impact

Far too much social signal, news, headlines, and media speculation about GM that are available to investors today. That information is available publicly through GM media outlets and privately through word of mouth or via GM internal channels. However, regardless of the origin, that massive amount of GM data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of GM news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of GM relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to GM's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive GM alpha.

GM Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards GM can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

General Motors Historical Investor Sentiment

Investor biases related to GM's public news can be used to forecast risks associated with an investment in GM. The trend in average sentiment can be used to explain how an investor holding GM can time the market purely based on public headlines and social activities around General Motors. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

GM's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GM and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average GM news discussions. The higher the estimate score, the more favorable the investor's outlook on GM.