General Motors (GM, $38.40) cuts cost to boost revenue, struggle in China continues
American auto-making giant General Motors clocked higher-than-expected first quarterly profit by cutting costs and selling more expensive trucks, like SUVs and crossover vehicles.
However, investors are not quite happy as revenue dropped by 3.4% to $34.88 billion from $36.1 billion during the same quarter a year ago and also missed the Wall Street estimate of $35.28 billion amidst falling vehicle sales and sliding market share. The company’s total market share slid from 17% to 16.1%.
On the other hand, adjusted earnings came-in at $1.41 per share against estimate of $1.11 per share. This was boosted by the company’s stake in the ride-hailing platform Lyft (LYFT) and French auto maker PSA Group. Sales of more expensive trucks, like its recently updated full-size pickup trucks, including the Chevrolet Silverado and GMC Sierra, also boosted GM’s profit margin as average sales prices rose by $5,800 year-over-year against outgoing models.
On an unadjusted basis, GM earned $2.1 billion in the first quarter, or $1.48 per share, up from $1.05 billion, or 72 cents per share, a year prior.
Yet, the company is still struggling in the world’s largest auto market, China, where its first quarter income fell 37% to $376 million and sales dropped 18% from the same period a year ago.
To boost its profit margin, GM is cutting more than 14,000 jobs at factories in the U.S. and Canada. The company has plans to launch more full-size pickups in the second half of 2019 with two new heavy-duty pickups from Chevrolet and GMC, which the company deems a favorite among buyers.
Further, to meet changing demand patterns, GM is shifting focus to self-driving and electrified vehicles that will include a complete range of EVs including full-size pickups. Shares of the company rose more than 6% over the last 12 months and is up more than 20% since the beginning of the year.
GM in -4.51% downward trend, sliding for three consecutive days on September 30, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GM declined for three days, in 179 of 275 cases, the price declined further within the following month. The odds of a continued downward trend are 65%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 24, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GM as a result. In 56 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
GM moved below its 50-day moving average on September 18, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GM crossed bearishly below the 50-day moving average on September 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 15 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 53%.
The Aroon Indicator for GM entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 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 73%.
GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of 20 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (1.141) is normal, around the industry mean (8.703). P/E Ratio (36.000) is within average values for comparable stocks, (493.775). Projected Growth (PEG Ratio) (0.283) is also within normal values, averaging (2.450). Dividend Yield (0.009) settles around the average of (0.017) among similar stocks. P/S Ratio (0.426) is also within normal values, averaging (2.589).
The Tickeron Seasonality Score of 37 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 47 (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 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 87 (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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General Information
a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles
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