General Motors (GM, $38.10) joins the race for electric vehicles
General Motors, America’s largest automaker, is all set to join the cohort of producing electric cars just like Tesla (TSLA), Ford (F) and Rivian and plans to add an all-electric pickup to its portfolio.
GM’s clientele has mostly been comprised of SUV buyers. Electric cars in general have been slow to catch up with American car buyers, even though electric hybrid models jumped from 195,226 in 2017 to 360,353 last year, but that is still less than 2% of the overall new vehicle market.
One of the other dominating automakers, Ford, has been planning to launch its own electric cars for some time now and has invested $500 million in Rivian to ramp up its production. It has confirmed that it is working up what is expected to be an all-electric version of its best-selling F-150.
It is not yet clear what GM exactly has in store, but it seems likely that a battery-based version of the big Chevrolet Silverado is underway. While everyone is focussing on full sixed trucks, this mid-size model could give the company an edge.
Echoing the lead of Rivian, Ford, GM and Tesla, these automakers would need to keep in mind another factor: range and charging. For example, drivers miles away from El Paso and even further from San Antonio, there would be a few public chargers, especially the high-speed ones he’d need access to when hauling goods to market.
For city dwellers, the issue could be access to a mechanic, especially in remote areas.
Notwithstanding these issues, U.S automakers are diversifying their portfolio by including electric vehicle line up. For example, Amazon has also teamed up with Rivian and is speculated to launch a fleet of battery-powered delivery trucks.
GM in upward trend: price rose above 50-day moving average on December 24, 2024
GM moved above its 50-day moving average on December 24, 2024 date and that indicates a change from a downward trend to an upward trend. In of 30 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where GM's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where GM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on December 24, 2024. You may want to consider a long position or call options on GM as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
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 .
The 10-day moving average for GM crossed bearishly below the 50-day moving average on December 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for GM entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 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 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 88, placing this stock slightly better than average.
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 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