General Motors (GM, $36.63) to invest $300 million in Orion assembly plant
Detroit based automobile manufacturer, General Motors, on Friday announced that it would make investments worth $300 million at its Orion Assembly Plant in Michigan, and is likely to add 400 jobs to build a new electric vehicle.
According to the GM CEO, Mary Barra, the new vehicle which will bear GM’s Chevrolet brand would be produced at its Orion plant outside Detroit. It was slated to be produced outside of the U.S. initially.
The $300 million investment comes as a part of the GM's pledge to invest a total of $1.8 billion in its U.S. manufacturing operations, which would create 700 new jobs and would support 28,000 jobs across six states.
According to the company, the reason for shifting the production of the new car to the U.S. is that it would require an advanced version of the platform used in the current Chevrolet Bolt electric vehicle, which the Orion plant currently builds. In addition, the move also helps the company in supporting the rules of origin provisions in the proposed United States, Mexico and Canada Agreement.
Last year, GM had announced that it plans to shut down five plants in North America and cut 14,000 jobs as it restructures its business to improve profitability. A move which attracted strong criticism President Trump.
GM's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for GM moved out of overbought territory on November 26, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 instances where the indicator moved out of the overbought zone. In of the 37 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 26, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GM as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GM turned negative on November 26, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GM broke above its upper Bollinger Band on November 25, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 223 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.815) is normal, around the industry mean (6.142). P/E Ratio (6.202) is within average values for comparable stocks, (18.218). Projected Growth (PEG Ratio) (0.846) is also within normal values, averaging (5.723). GM has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.042). P/S Ratio (0.362) is also within normal values, averaging (78.580).
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a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles