General Motors Stock Buy Hold or Sell Recommendation

GM Stock  USD 44.59  0.59  1.34%   
Allowing for the 90-day total investment horizon and your way above-average risk tolerance, our recommendation regarding General Motors is 'Strong Hold'. Macroaxis provides GM buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GM positions. The advice algorithm takes into account all of GM's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting GM's buy or sell advice are summarized below:
Real Value
48.01
Target Price
48.34
Hype Value
45.12
Market Value
44.59
Naive Value
46.75
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell General Motors given historical horizon and risk tolerance towards GM. When Macroaxis issues a 'buy' or 'sell' recommendation for General Motors, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as GM and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards General Motors. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Execute GM Buy or Sell Advice

The GM recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on General Motors. Macroaxis does not own or have any residual interests in General Motors or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute GM's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell GMBuy GM
Strong Hold

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon General Motors has a Risk Adjusted Performance of 0.1206, Jensen Alpha of 0.2071, Total Risk Alpha of (0.04), Sortino Ratio of 0.1504 and Treynor Ratio of 0.3493
General Motors investment recommendation module can be used to check and cross-verify current trade recommendations provided by analysts evaluating the entity's potential to grow using all of fundamental, technical, data market data available at the time. To make sure General Motors is not overpriced, please check out all GM fundamentals, including its cash per share, price to earnings to growth, and the relationship between the gross profit and book value per share . Given that General Motors has a price to book of 0.79 X, we strongly advise you to confirm General Motors market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

GM Trading Alerts and Improvement Suggestions

General Motors is unlikely to experience financial distress in the next 2 years
Over 97.0% of the company shares are owned by institutional investors
On 14th of March 2024 GM paid $ 0.12 per share dividend to its current shareholders
Latest headline from patch.com: Jobs In Limbo, Supply Chain Resilient After Baltimore Bridge Collapse

GM Returns Distribution Density

The distribution of GM's historical returns is an attempt to chart the uncertainty of GM's future price movements. The chart of the probability distribution of GM daily returns describes the distribution of returns around its average expected value. We use General Motors price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of GM returns is essential to provide solid investment advice for GM.
Mean Return
0.33
Value At Risk
-2.14
Potential Upside
2.70
Standard Deviation
1.61
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of GM historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

GM Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as GM is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading General Motors backward and forwards among themselves. GM's institutional investor refers to the entity that pools money to purchase GM's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Amvescap Plc.2023-12-31
20 M
Arrowstreet Capital Limited Partnership2023-12-31
19.7 M
Hotchkis & Wiley Capital Management Llc2023-12-31
18.1 M
Norges Bank2023-12-31
16.8 M
Morgan Stanley - Brokerage Accounts2023-12-31
15.2 M
Franklin Resources Inc2023-12-31
13.7 M
Legal & General Group Plc2023-12-31
12.6 M
Bank Of New York Mellon Corp2023-12-31
12.4 M
Northern Trust Corp2023-12-31
12.3 M
Blackrock Inc2023-12-31
137 M
Vanguard Group Inc2023-12-31
111.6 M
Note, although GM's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

GM Cash Flow Accounts

201920202021202220232024 (projected)
Dividends Paid2.4B669M186M397M(597M)(567.2M)
Capital Expenditures24.0B20.5B22.1B21.2B24.6B20.7B
Net Income6.7B6.3B9.9B9.7B9.8B9.9B
Change To Inventory(761M)(104M)(3.2B)(2.6B)(757M)(794.9M)
End Period Cash Flow22.9B23.1B23.5B21.9B21.9B22.1B
Change In Cash(553M)174M425M(1.6B)(31M)(32.6M)
Free Cash Flow(9.0B)(3.9B)(6.9B)(5.1B)(3.7B)(3.9B)
Depreciation14.1B12.8B12.1B11.3B11.9B10.0B
Other Non Cash Items(1.9B)(3.0B)(3.5B)(2.4B)(2.3B)(2.4B)
Change To Netincome(1.9B)(2.3B)(3.4B)(2.2B)(2.5B)(2.6B)
Investments13.0B(1.2B)6.4B(17.9B)(19.0B)(18.1B)
Net Borrowings(2.5B)6.1B406M6.6B5.9B7.0B

GM Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to GM or Automobiles sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that GM's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a GM stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.21
β
Beta against NYSE Composite0.92
σ
Overall volatility
1.67
Ir
Information ratio 0.12

GM Volatility Alert

General Motors has relatively low volatility with skewness of 1.44 and kurtosis of 6.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GM's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact GM's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

GM Implied Volatility

GM's implied volatility exposes the market's sentiment of General Motors stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if GM's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that GM stock will not fluctuate a lot when GM's options are near their expiration.

GM Fundamentals Vs Peers

Comparing GM's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze GM's direct or indirect competition across all of the common fundamentals between GM and the related equities. This way, we can detect undervalued stocks with similar characteristics as GM or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of GM's fundamental indicators could also be used in its relative valuation, which is a method of valuing GM by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare GM to competition
FundamentalsGMPeer Average
Return On Equity0.14-0.31
Return On Asset0.0224-0.14
Profit Margin0.06 %(1.27) %
Operating Margin0.02 %(5.51) %
Current Valuation146.98 B16.62 B
Shares Outstanding1.15 B571.82 M
Shares Owned By Insiders0.20 %10.09 %
Shares Owned By Institutions96.52 %39.21 %
Number Of Shares Shorted94.66 M4.71 M
Price To Earning6.76 X28.72 X
Price To Book0.79 X9.51 X
Price To Sales0.30 X11.42 X
Revenue171.84 B9.43 B
Gross Profit21.15 B27.38 B
EBITDA9.3 B3.9 B
Net Income9.84 B570.98 M
Cash And Equivalents19.15 B2.7 B
Cash Per Share18.45 X5.01 X
Total Debt122.65 B5.32 B
Debt To Equity1.65 %48.70 %
Current Ratio1.14 X2.16 X
Book Value Per Share53.57 X1.93 K
Cash Flow From Operations20.93 B971.22 M
Short Ratio4.93 X4.00 X
Earnings Per Share7.32 X3.12 X
Price To Earnings To Growth0.82 X4.89 X
Target Price49.91
Number Of Employees163 K18.84 K
Beta1.5-0.15
Market Capitalization50.79 B19.03 B
Total Asset273.06 B29.47 B
Retained Earnings55.39 B9.33 B
Working Capital7.17 B1.48 B

GM Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as GM . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About GM Buy or Sell Advice

When is the right time to buy or sell General Motors? Buying financial instruments such as GM Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities17.8B22.4B24.6B19.5B
Total Assets244.7B264.0B273.1B194.8B

Use Investing Ideas to Build Portfolios

In addition to having GM in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Real Estate Thematic Idea Now

Real Estate
Real Estate Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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When determining whether General Motors is a strong investment it is important to analyze GM's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GM's future performance. For an informed investment choice regarding GM Stock, refer to the following important reports:
Check out GM Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running GM's price analysis, check to measure GM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GM is operating at the current time. Most of GM's value examination focuses on studying past and present price action to predict the probability of GM's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GM's price. Additionally, you may evaluate how the addition of GM to your portfolios can decrease your overall portfolio volatility.
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Is GM's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.135
Dividend Share
0.36
Earnings Share
7.32
Revenue Per Share
125.984
Quarterly Revenue Growth
(0)
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.