GM Stock Buy or Sell Recommendation | GM - Macroaxis (2024)

Execute GM Buy or Sell Advice

The GM recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on General Motors. Macroaxis does not own or have any residual interests in General Motors or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute GM's advice using the current market data and latest reported fundamentals.

Strong Hold

	Market Performance	OK	Details
	Volatility	Very steady	Details
	Hype Condition	Low key	Details
	Current Valuation	Undervalued	Details
	Odds Of Distress	Very Low	Details
	Economic Sensitivity	Actively 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

For the selected time horizon General Motors has a Risk Adjusted Performance of 0.0733, Jensen Alpha of (0.02), Total Risk Alpha of (0.17), Sortino Ratio of 0.038 and Treynor Ratio of 0.11

General Motors investment recommendation module can be used to check and cross-verify current trade recommendations provided by analysts evaluating the entity's potential to grow using all of fundamental, technical, data market data available at the time. 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 book of 0.67X, 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.

GM Trading Alerts and Improvement Suggestions

GM Returns Distribution Density

The distribution of GM's historical returns is an attempt to chart the uncertainty of GM's future price movements. The chart of the probability distribution of GM stock daily returns describes the distribution of returns around its average expected value. We use General Motors price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of GM returns is essential to provide solid investment advice for GM.

Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of GM historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

GM Stock 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 originates 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.

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 Cash Flow Accounts

GM Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to GM or Automobiles sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that GM's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a GM stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.

GM Volatility Alert

General Motors has relatively low volatility with skewness of 1.24 and kurtosis of 3.7. However, we advise all investors to independently investigate General Motors to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GM's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact GM's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

GM Implied Volatility

GM's implied volatility exposes the market's sentiment of General Motors stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if GM's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that GM stock will not fluctuate a lot when GM's options are near their expiration.

GM Fundamentals Vs Peers

Comparing GM's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze GM's direct or indirect competition across all of the common fundamentals between GM and the related equities. This way, we can detect undervalued stocks with similar characteristics as GM or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of GM's fundamental indicators could also be used in its relative valuation, which is a method of valuing GM by comparing valuation metrics with those of similar companies.

GM Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as GM . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About GM Buy or Sell Advice

When is the right time to buy or sell General Motors? Buying financial instruments such as GM Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.

Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having GM in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

When determining whether General Motors is a strong investment it is important to analyze GM's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GM's future performance. For an informed investment choice regarding GM Stock, refer to the following important reports:

Complementary Tools for GM Stock analysis

When running GM's price analysis, check to measure GM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GM is operating at the current time. Most of GM's value examination focuses on studying past and present price action to predict the probability of GM's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GM's price. Additionally, you may evaluate how the addition of GM to your portfolios can decrease your overall portfolio volatility.

Is GM's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.