Is GM stock expected to rise?
General Motors Company quote is equal to 39.400 USD at 2022-08-16. Based on our forecasts, a long-term increase is expected, the "GM" stock price prognosis for 2027-08-13 is 58.765 USD. With a 5-year investment, the revenue is expected to be around +49.15%. Your current $100 investment may be up to $149.15 in 2027.
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 $50.44 with a high forecast of $87.00 and a low forecast of $29.00. The average price target represents a 27.76% change from the last price of $39.48.
Stock Price Forecast
The 20 analysts offering 12-month price forecasts for General Motors Co have a median target of 46.00, with a high estimate of 95.00 and a low estimate of 29.00. The median estimate represents a +16.53% increase from the last price of 39.48.
GM reported results near the low end of its updated Q2 guidance range this week. Supply chain issues could drive continued volatility in GM's financial results. GM is still likely to post solid full-year results in 2022 and 2023, with significant growth coming later this decade.
General Motors Company - Hold
Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of GM, demonstrate its potential to outperform the market. It currently has a Growth Score of B.
Based on our forecasts, a long-term increase is expected, the "GM" stock price prognosis for 2027-08-13 is 58.765 USD. With a 5-year investment, the revenue is expected to be around +49.15%. Your current $100 investment may be up to $149.15 in 2027.
GM stock has plummeted 45% year to date to around $32, even though the company still expects to earn about $7 per share in 2022. Based on General Motors' solid short-term and long-term positioning, GM stock's recent plunge looks like a terrific buying opportunity.
The average analyst price target for GM stock is about $52. That's down from about $74 at the start of the year. Analysts have taken price targets down as 2023 earnings-per-share estimates have gone to about $6.60 from $7.40.
GM trades for six times projected earnings of about $7 a share in both 2022 and 2023, one of the S&P 500 index's lowest price/earnings ratios. Its market cap of $60 billion compares with $1 trillion for Tesla (TSLA). “The stock is very attractive.
GM stock has risen by 78% since the end of 2018 compared to the S&P500 which has increased by 57% in the same period. In 2021 we expect revenue to recover marginally while earnings are expected to recover after a fall in 2020 with the impact of Covid-19.
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.
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.
But General Motors (GM), which suspended its dividend in the second quarter of 2020 due to the pandemic, isn't showing any signs of bringing it back. Neither company has been buying back much stock.
Mediocre balance sheet and slightly overvalued.
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Second-quarter net income was $1.7 billion, or $1.14 a share, down 40% from $2.8 billion, or $1.90 a share, a year earlier. Analysts had expected $1.20 a share, according to Refinitiv data.
GM is a smaller company than Ford. GM's total revenue for 2020 was $122 billion, a 10.75% decrease from the previous year. Ford's total revenue was $127 billion, an 18.45% decrease from the previous year.
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.
General Motors said on Friday that it's sitting on 95,000 vehicles that were built without computer chips or other components. Most were manufactured in June, the company said. GM attributed the holdup to "the timing of semiconductor shipments and other supply chain disruptions" in a regulatory filing.
Is GM financially stable?
General Motors Co Financial Strength. General Motors Co has the Financial Strength Rank of 5.
The average analyst price target for GM stock is about $52. That's down from about $74 at the start of the year. Analysts have taken price targets down as 2023 earnings-per-share estimates have gone to about $6.60 from $7.40.
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.
The YTD -33% return for GE marks an underperformance with -22% returns for the broader S&P500 index. Looking at the longer term, GE stock is down 26% from levels seen in late 2019.
But General Motors (GM), which suspended its dividend in the second quarter of 2020 due to the pandemic, isn't showing any signs of bringing it back. Neither company has been buying back much stock.
