The share price of General Motors Company [NYSE: GM] inclined by $21.49, presently trading at $22.86. The company’s shares saw 59.58% gains compared to the lowest price in the period of the last 52 weeks, set at 14.32 recorded on 03/25/20. The last few days have been benevolent to the share price as GM jumped by 27.92% during the last week, even though the stock is still up by 23.15 compared to +5.16 of all time high it touched on 03/25/20. However, the stock had a poor performance during the past 3 months, roughly losing -32.31%, while additionally dropping -41.71% during the last 12 months. General Motors Company is said to have a 12-month price target set at $44.06. That means that the stock has a strong potential to acquire 21.2% increase from the current trading price.
General Motors Company [NYSE:GM]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to General Motors Company [GM], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of 12/30/2019. On average, stock market experts give GM an Buy rating. The average 12-month price forecast for this stock is $22.86, with the high estimate being $59.00, the low estimate being $21.00 and the median estimate amounting to $37.00. This is compared to its latest closing price of $21.49.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for General Motors Company [GM] is sitting at 4.55. This is compared to 1 month ago, when its average rating was 4.42.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on 05/06/2020.
Fundamental Analysis of General Motors Company [GM]
Now let’s turn to look at profitability: with a current Operating Margin for General Motors Company [GM] sitting at 4.00% and its Gross Margin at 10.20%, this company’s Net Margin is now 4.80. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 3.97, and its Return on Invested Capital has reached 6.10. Its Return on Equity is 15.50%, and its Return on Assets is 2.80%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates GM financial performance.
Turning to investigate this organization’s capital structure, General Motors Company [GM] has generated a Total Debt to Total Equity ratio of 250.22. Similarly, its Total Debt to Total Capital is 71.45, while its Total Debt to Total Assets stands at 45.86. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 160.16, and its Long-Term Debt to Total Capital is 45.73.
What about valuation? This company’s Enterprise Value to EBITDA is 6.08 and its Total Debt to EBITDA Value is 5.17. The Enterprise Value to Sales for this firm is now 0.89, and its Total Debt to Enterprise Value stands at 0.78. General Motors Company [GM] has a Price to Book Ratio of 1.23, a Price to Cash Flow Ratio of 3.51 and P/E Ratio of 5.00. These metrics all suggest that General Motors Company is more likely to generate a positive ROI.
General Motors Company [GM] has 1.36B shares outstanding, amounting to a total market cap of 29.13B. Its stock price has been found in the range of 14.32 to 41.90. At its current price, it has moved down by -45.44% from its 52-week high, and it has moved up 59.58% from its 52-week low.
This stock’s Beta value is currently 1.64, which indicates that it is 13.65% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.96. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is General Motors Company [GM] a Reliable Buy?
Shares of General Motors Company [GM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.