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 saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for GM moved out of overbought territory on September 09, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 58 similar instances where the indicator exited the overbought zone. In 40 of the 58 cases the stock moved lower. This puts the odds of a downward move at 69%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GM as a result. In 57 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 63%.
The Moving Average Convergence Divergence Histogram (MACD) for GM turned negative on August 12, 2026. 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 49 similar instances when the indicator turned negative. In 31 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
Bullish Trend Analysis
Following a +3.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in 246 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 186 of 260 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 3 (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 (1.219) is normal, around the industry mean (8.840). P/E Ratio (38.446) is within average values for comparable stocks, (580.137). GM's Projected Growth (PEG Ratio) (0.302) is slightly lower than the industry average of (3.031). Dividend Yield (0.008) settles around the average of (0.038) among similar stocks. P/S Ratio (0.435) is also within normal values, averaging (2.816).
The Tickeron Price Growth Rating for this company is 45 (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 slightly better than average sales and a considerably 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.
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a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles
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