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DON'T BUY

Not asset light. High liabilities. Low margins. Better options for investors out there. High debt levels. Not a great business. Not founder led or owned. 

Automotive
BUY
cars

Autos are mired in the UAW strike now. Past strikes tend to be a good time to buy shares, though. He prefers GM over Ford for its higher margins, and its EV program competes well against Ford, though Tesla is the winner in EVs (surprises him). Ford and GM are trading at a reasonable multiple, but Tesla's is much higher, which gives him pause.

Automotive
PAST TOP PICK

(A Top Pick Oct 06/22, Down 12%)

The UAW strike is impacted all carmakers. Take a 3-10-year outlook and see the effect of EVs, a mammoth transformation in the car industry. Some say GM is a value trap, and that's possible. But he sees the upside being large. The downside is that it trades under 5x enterprise value to EBITDA.

Automotive
PAST TOP PICK
(A Top Pick Aug 04/22, Down 7%)

Was trading at 8x and their beat earnings, but shares still went down. The market feels that GM won't transition to EVs without big sacrifices. But GM has a lot of cash flow and is a dominant brand name. They will transition to EVs. Now, there's a car glut, even in EVs. Still owns it, but has disappointed.

Automotive
WEAK BUY

Ups and downs. Meeting most of its objectives on production, but a lot of the meaningful objectives are a ways out. Very modest 4.5x expected earnings. Downside on valuation is quite limited. Upside is we move back to previous volumes, though probably not tomorrow. Margins are higher than Ford.

Automotive
TRADE

Has been cheap for 20 years, and can't get out of its own way. PE around 5-6x. Never any growth rate. Can trade it. If you want something exciting on PEG, buy TSLA when it's on its back.

Automotive
HOLD
The impact of a UAW strike

Wells Fargo projects that a strike would cost GM $2.7 billion and Ford $2.4 billion of adjusted EBIT a month. That said, he's not that worried and is not a risk to sell the carmakers. A strike is a one-off event, and the stock market cares only about the future. Also, Biden won't let a strike drag on; cars are a critical industry. Third, these stocks have already come down to absorb a stock. That said, if the strike leads to much higher wages, that would hurt these stocks. Don't rush in to buy these stocks.

Automotive
WATCH

There is a transition to EV's going on and GM is starting to get into this. However it is hard to be nimble when it is such a large company. The internal combustion engine market will continue with most cars still belonging to this category. He is not buying at these levels but is watching.

Automotive
DON'T BUY

Downside of EV trend is that for traditional car makers, all the cash derived from selling traditional vehicles has to go right back into the EV side. Avoid the sector like the plague. Instead, look for component parts like chips and sensors.

Automotive
COMMENT

He is not optimistic about the space. There is a slowdown in the auto sector and you have to weigh the used car markets coming down and increasing costs.

Automotive
HOLD

Legacy car companies still have valuable assets. 
Does not own shares.
Rebound in travel will help business.
Unsure on future of business.
EV deal with Tesla positive. 


Automotive
BUY

EV sales are up 365% YOY, but mostly from the Chevy Bolts. Battery supply chain issues hamper sales of other EVs. Great PE.

Automotive
BUY

Recent deal with Tesla a wise move for long term partnership in electric vehicle industry.
Good long term prospects for the business.
Very high demand for products.


Automotive
PAST TOP PICK
(A Top Pick Jun 10/22, Down 10%)

At the time, he considered GM defensive and didn't expect a downturn in autos because inventories were so low at the time. GM has done well this year, beating expecations and trading at 6.5x forward PE. It's dragging its heels and expects growth in the future, namely in EV's. He's sticking with it.

Automotive
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 31/23, Down 18.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with GM has triggered its stop at $32.  To remain disciplined, we recommend covering the position at this time.  

Automotive
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General Motors Corporation(GM-N) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 16

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 5

Total Signals / Votes : 24

Stockchase rating for General Motors Corporation is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

General Motors Corporation(GM-N) Frequently Asked Questions

What is General Motors Corporation stock symbol?

General Motors Corporation is a American stock, trading under the symbol GM-N on the New York Stock Exchange (GM). It is usually referred to as NYSE:GM or GM-N

Is General Motors Corporation a buy or a sell?

In the last year, 24 stock analysts published opinions about GM-N. 16 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for General Motors Corporation.

Is General Motors Corporation a good investment or a top pick?

General Motors Corporation was recommended as a Top Pick by on . Read the latest stock experts ratings for General Motors Corporation.

Why is General Motors Corporation stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is General Motors Corporation worth watching?

24 stock analysts on Stockchase covered General Motors Corporation In the last year. It is a trending stock that is worth watching.

What is General Motors Corporation stock price?

On 2023-11-27, General Motors Corporation (GM-N) stock closed at a price of $28.5.