GM Should I Buy
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General Motors Co is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available. While the stock has positive long-term analyst ratings and potential future tailwinds, the current financial performance, insider selling trends, and lack of immediate positive catalysts suggest it is better to hold off on investing right now.
The technical indicators are mixed. The MACD is positive and expanding, suggesting bullish momentum. The RSI is neutral at 53.754, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is currently trading near its pivot level (74.927) with resistance at 77.295 and support at 72.559, indicating limited short-term upside potential.
and positive long-term outlooks, citing reduced EV losses, improved profitability, and favorable regulatory changes. Wolfe Research and BofA highlight significant tailwinds into 2026 and 2027.
Insider selling has increased significantly by 6860.53% over the last month, which could indicate a lack of confidence from management. Additionally, the recent financial performance shows declining revenue (-5.06% YoY) and negative gross margins (-2.69%), which are concerning. Upcoming union negotiations and potential strikes could also pose risks.
In Q4 2025, GM's revenue dropped by -5.06% YoY to $45.29 billion. Despite this, net income improved significantly to -$3.33 billion (up 93.04% YoY), and EPS increased to -3.6 (up 119.51% YoY). However, gross margin dropped sharply to -2.69% (-124.82% YoY), indicating operational challenges.
Analysts are bullish on GM, with multiple upgrades and price targets ranging from $90 to $107. They cite strong execution, reduced EV losses, and improved profitability as key drivers. Wolfe Research and BofA have reiterated Buy ratings with optimistic long-term EPS projections for 2026 and 2027.
