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 -2.35% downward trend, sliding for three consecutive days on July 01, 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 of 277 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GM as a result. In 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 .
The Moving Average Convergence Divergence Histogram (MACD) for GM turned negative on June 11, 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 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
GM moved below its 50-day moving average on June 23, 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 July 01, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 .
Bullish Trend Analysis
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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 344 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 262 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 (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 (1.103) is normal, around the industry mean (9.276). P/E Ratio (27.974) is within average values for comparable stocks, (581.754). Projected Growth (PEG Ratio) (0.338) is also within normal values, averaging (2.795). Dividend Yield (0.009) settles around the average of (0.038) among similar stocks. P/S Ratio (0.396) is also within normal values, averaging (14.939).
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 that the returns do not compensate for the risks. GM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.
The Tickeron SMR rating for this company is (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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles
Advertisement