GM Stock Analysis: Buy, Sell, or Hold?

GM - General Motors Company

MOTOR VEHICLES & PASSENGER CAR BODIES
$84.00
-2.26 (-2.62%) β–Ό
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Apr 28, 2026

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
πŸ’‘ BUY OPPORTUNITY: GM shows positive signals but monitor for confirmation. Market pricing in 2.0% decline. Moderate conviction.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$127.89
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$79.41
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 6.8x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: GM is currently trading at $84.00, which is considered slightly high relative to its 30-day fair value range of $80.44 to $84.31. The stock's valuation (Forward PE: 6.4) is in line with its historical norms (6.8). Remarkably, the market is currently pricing in an annual earnings decline of 2.0% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, GM is in a strong uptrend. Immediate support is located at $77.35, while resistance sits at $87.31.

Market Sentiment: GM has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Fair Price Range $80.44 - $84.31
Company Quality Score 63/100 (BUY)
Volume Confirmation HIGH
Confidence Score 71.4%

All Signals

  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($90.54)

Fair Price Analysis

30-Day Fair Range $80.44 - $84.31
Current vs Fair Value SLIGHTLY HIGH

Support & Resistance Levels

Support Level $77.35
Resistance Level $87.31
Current Trend Strong Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 6.37
Wall Street Target $90.54 (+5.0%)
Revenue Growth (YoY) -5.1%
Earnings Growth (YoY) -49.6%
Profit Margin 1.5%
Valuation Discount vs History -2.0% cheaper
PE vs Historical 6.4 vs 6.8 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -2.0% (market-implied from PE analysis)
1-Year Target $84.53 (-2%)
2-Year Target $82.84 (-4%)
3-Year Target $81.19 (-6%)
3-Yr Target (if PE normalizes) (PE: 6β†’7) $86.71 (+1%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 9.6%) $397.45 (+361%)
Base: (SPY PE: 6.4, Growth: 9.6%) $113.48 (+32%)
Bear: (PE: 5.4, Growth: 9.6%) $96.46 (+12%)
πŸ“ˆ Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (6x PE) as earnings recover.
Trailing PE: 25.96 | Current EPS (TTM): $3.27
Bull Case $186.78 (+122%)
Analyst growth 100.0%, PE expands to 28.6
Base Case $169.80 (+102%)
Market implied 100.0%, PE stable at 26.0
Bear Case $57.73 (-31%)
Severe decline -20.0%, PE contracts to 22.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 6.4 to 6.8
Stabilization Target: $92.12 (+6.8%)
PE Expansion Potential: +6.8%
Last updated: January 30, 2026 10:08 PM ET
Data refreshes hourly during market hours. Next update: 11:08 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
15
Sells
Net
INSIDERS SELLING
Recent Transactions
Mark L Reuss SELL 260600 shares 2025-10-22
Christopher Hatto SELL 23400 shares 2025-09-26
Rory Harvey SELL 6600 shares 2025-09-26

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