Consumer Discretionary Sector Underperforms; GM Achieves Highest Quant Score
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: seekingalpha
- Sector Performance Analysis: In Q4 2025, the S&P 500 Consumer Discretionary sector (XLY) fell by 0.96%, significantly underperforming the S&P 500's overall 2.0% rise, indicating uneven performance across cyclical areas, particularly compared to Health Care's (XLV) 7.9% gain.
- Quant Rating System: According to Seeking Alpha's Quant Rating system, the average health score for the consumer discretionary sector is 3.15, reflecting overall performance disparities in valuation, earnings growth, and profitability, with a maximum score of 5 indicating competitive differences within the industry.
- Leading Company Performance: General Motors (GM) leads the sector with a Quant score of 4.96, bolstered by A+ ratings in profitability, momentum, and earnings revisions, and after beating third-quarter earnings, it raised its full-year outlook, showcasing proactive adjustments in its EV strategy.
- Struggling Low-Ranked Companies: Lucid Group (LCID) ranks lowest in the sector with a Quant score of 1.05, reflecting F grades in profitability and momentum, and after missing third-quarter earnings expectations, it faces liquidity pressures and production target challenges, highlighting ongoing profitability and momentum issues within the sector.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 86.380
Low
48.00
Averages
82.06
High
100.00
Current: 86.380
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
General Motors Shares Hit All-Time High Amid Strong Growth
- Strong Profit Growth: General Motors (GM) achieved double-digit profit growth despite challenges from tariffs and EV restructuring, leading to an all-time high in stock price and solidifying its position as the top auto brand in the U.S.
- Increased Shareholder Returns: The company announced a 20% increase in its quarterly dividend to $0.18 and a $6 billion stock buyback plan, measures that have bolstered investor confidence and led analysts to reiterate their Buy ratings on the stock.
- Optimistic Future Outlook: Despite a 5% decline in total revenue, GM expects EBIT margins of 8-10% and free cash flow between $9 billion and $11 billion for FY25, demonstrating resilience and profitability in its core operations.
- Ongoing Technology Investments: GM is ramping up investments in electric vehicles and robotics to enhance manufacturing quality and reduce costs, with CEO Mary Barra stating that the company will continue to execute cost-reduction plans to ensure future profitability.
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General Motors Reports Strong Q4 Earnings, Adjusted EPS Beats Estimates
- Strong Earnings Performance: General Motors reported adjusted earnings per share of $2.51 for Q4, a 30.4% year-over-year increase, surpassing analyst expectations of $2.20, indicating sustained profitability improvements.
- Sales Miss Expectations: While sales reached $45.287 billion, they fell short of the market's $45.804 billion forecast, reflecting challenges in market demand.
- Cautious Future Outlook: The company forecasts adjusted earnings per share between $9.75 and $10.50 for fiscal 2026, below Wall Street's expectation of $11.73, indicating uncertainty in future market conditions.
- Analyst Rating Upgrade: RBC Capital raised its price target from $92 to $107, anticipating an additional $500 million in adjusted EBIT for fiscal 2026 through tariff reductions and warranty improvements, reflecting confidence in the company's future performance.
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