Stock Price & Analysis

Based on the provided data and recent market developments, here's a comprehensive analysis of GM stock:

Technical Analysis

The stock is showing bearish signals with recent price action:

• Currently trading at $46.30, down 3.34% in the last session
• Below both 5-day and 10-day moving averages
• RSI-14 at 35.44 indicates approaching oversold territory but not yet extreme
• MACD showing bearish momentum with negative divergence

Fundamental Factors & Recent Developments

• GM is facing multiple headwinds:
  1. China Operations: Recorded a $4 billion write-down related to Chinese joint ventures
  2. Trade Concerns: Potential 25% tariffs on Mexican imports could significantly impact operations, as GM has substantial manufacturing presence in Mexico
  3. Plant Closure: Recently announced closure of a Chinese plant manufacturing Buick GL8 and Chevrolet Tracker models

Market Position & Strategy

• Maintains position as #2 EV maker in the US after Tesla
• CEO Mary Barra emphasizes flexibility in production and supply chain to mitigate potential tariff impacts
• Focus shifting to premium brands (Cadillac, Buick) in Chinese market

Recommendation

SELL recommendation based on:

1. Deteriorating technical indicators
2. Multiple fundamental headwinds
3. Increasing operational risks from potential tariffs
4. Uncertainty in Chinese market performance

Price Targets:

• Support level: $45.65 (Fibonacci S2)
• Next resistance: $48.43 (Fibonacci R1)

Based on the provided data and recent market analysis, here is the price prediction for GM stock in 2025:

Technical Analysis

Market Outlook and Price Target

GM stock is expected to trade around $42-44 by mid-2025, representing a potential decline from current levels. This bearish outlook is supported by several factors:

• Technical indicators show a "bullish-to-bearish" reversal pattern with the stock breaking down its upward trend
• The 150-day moving average is showing a downward inflection
• The stock has already declined 22% from its recent high in November 2024

Fundamental Drivers

The lower price target is justified by:

• Rising debt-to-equity ratio of 197.79% in 2024, up from 178.53% in 2023
• Declining net margin from 5.73% in 2023 to 3.18% in 2024
• Net income dropped from $10.02B in 2023 to $7.19B in 2024

The S1 support level for GM Stock is $46.11 ,The R1 resistant level for GM Stock is $48.42.

As of the end of day on 2025-02-26, the price of GM Stock was $46.78.

The target price for GM Stock according to analyst rating is 58.80, with the highest price target at 85.00 and the lowest at 37.00. Analysts have a Moderate Buy rating on GM Stock overall.

The market cap of GM is $46.5B.

Based on the provided data and recent market activity, I'll analyze whether GM is overvalued:

Valuation Analysis: GM currently trades at a P/E ratio of 6.4x, which is significantly below the US market average of 18.1x. This suggests the stock is undervalued from a pure earnings multiple perspective.

Recent Performance: The stock has declined 3.34% to $46.29 in the most recent trading session, showing some near-term weakness. However, GM has delivered strong financial results with Q4 2024 beating estimates, reporting adjusted EPS of $1.92 and revenue of $47.7 billion.

Market Position & Fundamentals:

• GM maintains strong market leadership in North America, generating 81.9% of its revenue from this region
• The company earned $9.4 billion selling 9.8 million vehicles in its recent fiscal year
• Management has provided 2025 guidance for adjusted EPS of $11-$12 and net income of $11.2-$12.5 billion

Technical Analysis:

Conclusion: Based on GM's strong earnings, low valuation multiples compared to the broader market, and solid forward guidance, the stock appears undervalued at current levels. The main risks include potential tariff impacts and EV transition costs, but these appear to be more than priced into the current valuation.

General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, our 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.

Based on the available data and market analysis, here is the price prediction for GM stock by 2030:

GM stock is projected to reach approximately $85-90 by 2030, driven by the company's successful transition to electric vehicles and strong financial fundamentals. The company's consistent revenue growth from $122.4B in 2020 to $171.8B in 2023, along with improving net margins and EPS trends, supports this bullish outlook. Wall Street analysts currently maintain a "Moderate Buy" rating with a Street-high price target of $85, suggesting significant upside potential over the long term.

GM has a total of 163000 employees.