General Motors: This car stock is dirt cheap.

Last Updated: 13. Februar 2024By

General Motors is one of the world’s leading car manufacturers and has its headquarters in the USA. In collaboration with strategic partners, the company produces vehicles and vans in 30 countries worldwide. The group’s most prominent brands include Buick, Cadillac, Chevrolet, and GMC.

Disappointing results – Still beats analyst forecasts In the fourth quarter, revenue decreased from US$43.11 billion in the previous year to US$42.98 billion, but still exceeded analyst expectations of US$39.47 billion. Earnings per share decreased from US$2.12 to US$1.24, but still beat analyst estimates of US$1.14. This shows that even with lackluster results, one can still succeed.

CFO remains optimistic „We expect wholesale volume to grow as we recover from the impact of the strike and continue our track record of market share gains, primarily driven by higher EV volume,“ said Chief Financial Officer Jacobson.

GM raises annual forecast This is also reflected in the optimistic annual forecast. For 2024, the car manufacturer predicts earnings per share of US$8.50 to US$9.50, which is higher than previous expectations of US$7.68. Analysts are expecting US$7.76.

Analysts with a wide range of price targets Conclusion: This looks good. Since the beginning of the year, the stock has been on a nice uptrend. Although the price targets from analysts range from US$28 to US$95, overall sentiment among analysts is positive. 17 out of 25 analysts recommend buying, 7 recommend holding, and only one analyst prefers selling. The average analyst price target is US$45. With a P/E ratio of 4.5, the car stock is extremely cheap.

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