Depends on your risk tolerance. He's been looking at GM recently, but hasn't taken any action. Really good recent quarter, will be pressure on financing side of the business. Targets are pretty optimistic. Toyota is a safer bet for the next year or so; it's a giant company with improving profits, uncertainty on EV strategy is not a short-term game-changer. TSLA is his favourite EV play in the auto-making space. TSLA has already won the EV race, especially as to vertical integration.
Recently reported earnings for GM beat analyst estimates by 30%, with sales up 28%. Improved supply chain issues are allowing momentum to build. They expect their EV division to have a banner year. It trades at 7x earnings compared to peers at 20x and is valued right around book value. We recommend a stop-loss at $32, looking to achieve $51 -- upside potential over 30%. Yield 0.4%
Deep cyclical. Auto sales were tough in 2022. Starting to break above the 200-day MA, but still at the cusp. Be careful. Not his top name. Definite value at 5-6x earnings, but don't be caught just looking at the value. One name he's watching is MBGYY.
Markup, 50% retracement, and now trading in a triangle consolidation pattern. Next move will be a breakout to either the upside or the downside. Thinks it'll be to the upside. Likes reward/risk here. If it breaks out above resistance, confirms you're seeing higher highs and higher lows, and that's quite positive.
Has struggled recently, but GM shows great promise because of the EV revolution. They want to double revenues by 2030 and spending $25 billion on EV, hoping to sell 1 million of them by 2025. Supply chain issues have troubled the entire industry, but are now being solved. Inventories are returning to normal. Trades at cheap multiples.
Seeing signs of a base forming on the price of shares.
Good time to buy.
Shift to electric vehicles will be good for the business.
Expecting higher prices for the stock.
In the value space, around 6.5x PE. Too much of a deep cyclical for him. Shares could bounce around here for a while. A bit late to the EV game compared to Ford. Lots of competition in the EV space.
Was upgraded today. The legacy gas-powered car business is going gangbusters and EVs and self-driving cars are gravy. If there's no recession, then GM is trading at 90% book value and 6x earnings.
Their report will be interesting: they'll talk about supply. The last two years they couldn't meet demand and now where is it given borrowing costs and higher rates? It trades at 6x earnings. Demand needs to improve.
Continues to like General Motors.
Trading at cheap price.
Being hurt by fears of recession.
Higher interest rates makes it harder to finance cars for consumers.
Shortage of semi-conductors still a problem.
Yes, recession not good for auto sales. GM has all the component parts to do well long term: aims to double revenues by 2030, 40% EVs by 2025 which are higher margin, costs under control. Trades less than 6x earnings. Inexpensive opportunity. Owns Cruise, the cherry on top. Yield is 1.04%. (Analysts’ price target is $52.23)
Ford: It's a supply chain problem. If the problem was solved, shares would hit $20, not $12 now. GM is a play on EV's. They've spent a lot on EV's but don't get credit for it. But there's a lot less volatility with GM than Tesla in the EV space. GM is hiring a ton of young, smart engineers and pouring a lot of capex. Over time, they will be a big player in EV's, which will be affordable.
Believes company is under valued at current stock price ($40).
Normalized earnings per share is around $8 per share.
Chip shortages have causes company to not be able to make enough cars.
Demand is higher than supply for automobiles right now.
Investing heavily in electric cars.
Looking to double revenues by 2030.
General Motors Corporation (GM) Frequently Asked Questions
What is General Motors Corporation stock symbol?
General Motors Corporation is a American stock, trading under the symbol GM (previously GM-N on Stockchase) on the New York Stock Exchange (GM). It is usually referred to as NYSE:GM or GM
Depends on your risk tolerance. He's been looking at GM recently, but hasn't taken any action. Really good recent quarter, will be pressure on financing side of the business. Targets are pretty optimistic. Toyota is a safer bet for the next year or so; it's a giant company with improving profits, uncertainty on EV strategy is not a short-term game-changer. TSLA is his favourite EV play in the auto-making space. TSLA has already won the EV race, especially as to vertical integration.