Has GM Stock Run Out of Upside?
Last Tuesday, General Motors (NYSE: GM) posted another strong quarterly profit. While GM's profit fell significantly on a year-over-year basis -- even excluding charges related to the sale of its European operations -- the company still posted adjusted earnings per share of $1.32, which was $0.20 ahead of the average analyst estimate.
GM stock rose on Tuesday, following the favorable earnings report. However, it gave back all of its gains and then some over the next three days, after a widely followed auto analyst cut his rating on the stock, saying it had risen too far. Yet GM stock remains quite cheap, and the company has meaningful opportunities to further improve its earnings in the years ahead. This suggests that the stock has plenty of potential to continue rising.
Last quarter, General Motors had to cut output 26% year over year in its core North American market. This cut included planned downtime related to future product launches, lower production of slow-selling passenger cars to facilitate an inventory correction, and (to some extent) the impact of a strike at the Canadian plant that builds the popular Chevy Equinox crossover.
Source: Fool.com
General Motors Corp Stock
Our community is currently high on General Motors Corp with 37 Buy predictions and 8 Sell predictions.
As a result the target price of 48 € shows a slightly positive potential of 17.98% compared to the current price of 40.69 € for General Motors Corp.
