General Motors
GM
$85.62
-0.58%
General Motors Company is a multinational automotive manufacturer headquartered in Detroit, Michigan, designing, building, and selling vehicles under brands including Chevrolet, GMC, Cadillac, and Buick, along with providing automotive financing through GM Financial. As the US market share leader with 17.4% of US sales in 2025, GM is a dominant incumbent in the traditional auto industry, but it is also aggressively pivoting toward electric vehicles and autonomous driving technology. The current investor narrative centers on GM's repeated upward revisions to its 2026 profit outlook—now up to $16 billion—driven by resilient pricing and shrinking EV losses, while concerns persist over tariff headwinds, particularly a potential doubling of Canadian tariffs, and ongoing losses in its China operations.…
GM
General Motors
$85.62
Related headlines
GM 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on General Motors's 12-month outlook, with a consensus price target around $101.64 and implied upside of +18.7% versus the current price.
Average Target
$101.64
0 analysts
Implied Upside
+18.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$61 - $132
Analyst target range
GM is covered by 26 analysts, with a consensus recommendation of 'buy' and a mean recommendation score of 1.70 (where 1 is strong buy and 5 is sell). The average price target is $101.58, implying an upside of approximately 15.7% from the current price of $87.76. The distribution of ratings is not provided, but the bullish consensus is supported by recent actions from major firms like RBC Capital, JP Morgan, and Citigroup, all maintaining outperform or buy ratings. The target price range spans from a low of $61.00 to a high of $132.00, indicating a wide dispersion of views. The high target of $132 assumes GM can achieve its raised 2026 profit guidance of up to $16 billion, driven by strong North American pricing and a successful EV ramp, while also benefiting from potential tariff refunds. The low target of $61 reflects concerns about escalating trade tensions, particularly the potential doubling of Canadian tariffs, and persistent losses in China, which could erode earnings. The wide spread between the low and high targets highlights the significant uncertainty surrounding GM's future, driven by macroeconomic and geopolitical factors, but the overall bullish tilt suggests analysts see more upside than downside at current levels.
Bulls vs Bears: GM Investment Factors
GM presents a mixed investment case with strong bullish drivers including aggressive buybacks, raised profit guidance, robust free cash flow, and a significant valuation discount, contrasted by bearish concerns over China losses, tariff risks, revenue contraction, high leverage, and earnings volatility. Currently, the bull case has stronger evidence, supported by the company's repeated upward guidance revisions and substantial cash generation, which suggest management's confidence in overcoming near-term headwinds. The most critical tension is whether GM can sustain its North American profitability and successfully navigate tariff and China challenges to achieve its ambitious $16 billion profit target, which would validate the low forward PE and drive significant upside.
Bullish
- Aggressive Shareholder Returns: GM has been aggressively buying back stock, reducing shares outstanding from 1.116 billion in Q4 2024 to 919 million by Q1 2026, a ~18% reduction. This, combined with a dividend yield of 0.88%, demonstrates a strong commitment to returning capital to shareholders, which supports EPS growth.
- Raised 2026 Profit Guidance to $16B: GM raised its 2026 profit outlook to as much as $16 billion, marking the second increase this year. This upward revision, driven by steady pricing and shrinking EV losses, signals improving operational efficiency and management confidence in future earnings.
- Robust Free Cash Flow Generation: GM generated $12.48 billion in trailing twelve-month free cash flow, providing ample coverage for capital expenditures and shareholder returns. This strong cash generation supports the company's ability to fund its EV transition and return capital to investors.
- Significant Discount to Peers on Forward PE: GM trades at a forward PE of 5.91x, a substantial discount to the auto industry average of 8-12x. This implies the market is pricing in significant risks, but if GM executes on its guidance, the stock offers a compelling value opportunity.
Bearish
- Persistent Losses in China Operations: GM continues to face persistent losses in its China operations, which remain a drag on overall profitability. This international exposure adds uncertainty and dilutes the strength of North American earnings.
- Tariff Headwinds and Escalating Trade Tensions: The potential doubling of Canadian tariffs poses a significant risk to GM's cost structure and profitability. While the company has historically absorbed tariff costs, the magnitude of this increase could pressure margins and earnings.
- Revenue Contraction in Recent Quarters: GM's revenue declined 0.9% year-over-year in Q1 2026 to $43.62 billion, following a pattern of fluctuating quarterly revenue. This deceleration suggests weakening demand or pricing pressures, which could limit earnings growth.
- High Debt-to-Equity Ratio: GM's debt-to-equity ratio stands at 2.13, indicating a leveraged balance sheet. This financial leverage increases vulnerability to economic downturns and interest rate hikes, potentially constraining financial flexibility.
GM Technical Analysis
GM's stock is in a robust long-term uptrend, with a 1-year price change of +50.92%, significantly outperforming the S&P 500's +18.65% over the same period. The current price of $87.76 sits near the upper end of its 52-week range, at approximately 95.5% of the distance from the 52-week low of $54.33 to the high of $91.85, indicating strong momentum and bullish sentiment, though it also suggests the stock may be approaching overbought conditions. The stock has rallied from its 52-week low, but it remains about 4.5% below its 52-week high, a level that could act as resistance.
Beta
1.32
1.32x market volatility
Max Drawdown
-16.2%
Largest decline past year
52-Week Range
$54-$92
Price range past year
Annual Return
+45.8%
Cumulative gain past year
| Period | GM Return | S&P 500 |
|---|---|---|
| 1m | -1.3% | -1.1% |
| 3m | +5.1% | +3.0% |
| 6m | +18.3% | +15.4% |
| 1y | +45.8% | +16.2% |
| ytd | +5.7% | +12.1% |
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GM Fundamental Analysis
GM's revenue trajectory shows slight contraction, with the most recent quarter (Q1 2026) reporting revenue of $43.62 billion, a 0.9% year-over-year decline. This follows a pattern of fluctuating quarterly revenue, with Q4 2025 revenue of $45.29 billion and Q3 2025 revenue of $48.59 billion, indicating a deceleration from the prior year's levels. The revenue decline is primarily attributed to lower vehicle volumes and pricing pressures, partially offset by growth in GM Financial and stable North American operations, which contributed $36.40 billion in Q1 2026. The company's profitability has been volatile, with Q1 2026 net income of $2.63 billion and a net margin of 6.02%, a sharp recovery from the Q4 2025 net loss of $3.31 billion, which was impacted by special charges. Gross margin in Q1 2026 was 11.45%, down from 12.13% in Q1 2025, reflecting ongoing cost pressures and mix shifts, while operating margin improved to 6.71% from the prior quarter's negative figure. GM's balance sheet remains leveraged, with a debt-to-equity ratio of 2.13 and a current ratio of 1.17, indicating moderate liquidity. The company generated $1.44 billion in free cash flow in Q1 2026, a significant improvement from the negative free cash flow in Q4 2025, and its trailing twelve-month free cash flow stands at $12.48 billion, providing ample coverage for capital expenditures and shareholder returns. Return on equity is 4.41%, reflecting the company's large equity base and cyclical earnings, while the cash position of $24.06 billion offers a cushion against economic downturns.
Quarterly Revenue
$43.6B
2026-03
Revenue YoY Growth
-0.9%
YoY Comparison
Gross Margin
11.5%
Latest Quarter
Free Cash Flow
$12.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GM Overvalued?
Given GM's positive trailing net income, the PE ratio is the most appropriate valuation metric. The trailing PE stands at 24.42x, while the forward PE is significantly lower at 5.91x, implying the market expects a substantial earnings increase in the coming year, consistent with analyst estimates of EPS around $14.81. This wide gap between trailing and forward earnings suggests the market is pricing in a strong earnings recovery, likely driven by cost savings and improved EV profitability. Compared to the industry average, GM's forward PE of 5.91x is at a significant discount to the broader auto industry, which typically trades at 8-12x forward earnings, representing a 25-50% discount. This discount reflects concerns about cyclicality, tariff exposure, and the transition to EVs, but it also suggests the stock is undervalued relative to peers if GM can execute on its guidance. Historically, GM's trailing PE has ranged from as low as 3.46x in Q1 2025 to over 24x currently, with the current level near the top of its historical band due to depressed trailing earnings. However, on a forward basis, the stock trades at a historically low multiple, indicating that the market is skeptical of the sustainability of future earnings, presenting a potential value opportunity if the company can deliver on its ambitious profit targets.
PE
24.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 3x~12x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.0x
Enterprise Value Multiple