GM Should I Buy
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General Motors is not a strong buy at this moment for a beginner investor with a long-term strategy. While the company has positive analyst sentiment and a strong outlook for 2026, the current technical indicators and financial performance do not suggest an optimal entry point. The stock's recent price trend and lack of significant trading signals further support a hold recommendation.
The MACD is negatively expanding, indicating bearish momentum. RSI is neutral at 33.32, and moving averages are converging, suggesting no clear trend. The stock is trading near its key support level of 79.921, with resistance at 83.184. Overall, technical indicators do not suggest a strong buy signal.
Analysts have consistently raised price targets, with several firms projecting prices above $100 due to GM's strong 2026 guidance, improved profitability, and reduced tariff risks. The company also authorized a $6B buyback, signaling confidence in its financial position.
Declining EV sales globally and regulatory challenges in the U.S. could impact GM's growth in the electric vehicle market. Additionally, the company's Q4 financials showed a revenue decline of 5.06% YoY and a negative gross margin of -2.69%, down significantly YoY.
In Q4 2025, GM's revenue dropped by 5.06% YoY to $45.29B. However, net income improved significantly to -$3.33B (up 93.04% YoY), and EPS increased to -3.6 (up 119.51% YoY). Despite these improvements, the gross margin dropped sharply to -2.69%, reflecting operational challenges.
Analysts are overwhelmingly positive, with multiple upgrades and price target increases. The average price target is above $100, with firms citing strong 2026 guidance, improved profitability, and reduced tariff risks as key drivers. However, one firm (Wells Fargo) maintains an Underweight rating with a $57 target, citing concerns about optimistic guidance.
