General Motors (GM, $49.56) shares got downgraded at Morgan Stanley
General Motors shares fell lower Tuesday, after analysts at Morgan Stanley lowered their rating and price target on the automaker’s stock.
Morgan Stanley analyst Adam Jonas slashed his rating on General Motors to equal-weight. The analyst lowered his price target by $20 to $55 per share. Jonas mentioned that GM’s shift to electric vehicles will likely lead to a negative compound annual growth rate of overall revenues, between now and the end of the decade.
According to Jonas, GM's near-term projections including 2022 earnings of around $14 billion, capital spending of around $10 billion a year for the next several years, has led to the "most significant estimates reduction” Morgan Stanley has made for GM since the start of Covid. The analyst’s revised forecast on earnings per share is $6.64 -- approximately 11% lower than the prior outlook.
"We now expect GM to remain one holistic company for at least the next 12-18 months as management builds out its EV, AV and connected capabilities," Jonas said. However, the analysts maintains concerns around the automaker’s shift from ICE to electrification.
Momentum Indicator for GM turns negative, indicating new downward trend
GM saw its Momentum Indicator move below the 0 level on May 16, 2022. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned negative. In 58 of the 79 cases, the stock moved further down in the following days. The odds of a decline are at 73%.
Current price $36.00 is below $60.12 the lowest resistance line found by A.I. Throughout the month of 04/25/22 - 05/25/22, the price experienced a -10% Downtrend, while the week of 05/18/22 - 05/25/22 shows a +0.42% Uptrend.
The Moving Average Convergence Divergence Histogram (MACD) for GM turned negative on May 12, 2022. 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 41 similar instances when the indicator turned negative. In 25 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
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 68%.
The Aroon Indicator for GM entered a downward trend on May 25, 2022. 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 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, 26 of 40 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 65%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 3 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 +7.07% 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in 212 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 57%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.07.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly 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 (0.845) is normal, around the industry mean (2.903). P/E Ratio (5.977) is within average values for comparable stocks, (72.908). Projected Growth (PEG Ratio) (1.222) is also within normal values, averaging (4.667). GM has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (0.405) is also within normal values, averaging (141.238).
The Tickeron Profit vs. Risk Rating rating for this company is 74 (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 86, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. GM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 60 (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 8 (best 1 - 100 worst), indicating very 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.
Automobiles continue to be arguably the most popular form of passenger travel in the U.S., and major automobile makers have revenues and market capitalizations running into multi-billions. In recent years, the industry has been experiencing some path-breaking innovations like electric vehicles and self-driving technology. While there are long-standing companies like General Motors, Ford, and Toyota Motors operating in this space, there are also emerging/rapidly growing players like Tesla – which has had a major role in the growing popularity of the electric vehicle market. With technological advancements taking steam in the auto space, we’ve also witnessed collaborations (or talks of potential partnerships) of carmakers with tech behemoths like Google’s subsidiary, Waymo.
The average market capitalization across the Motor Vehicles Industry is 31.3B. The market cap for tickers in the group ranges from 4.3M to 699.2B. TSLA holds the highest valuation in this group at 699.2B. The lowest valued company is GKIT at 4.3M.
The average weekly price growth across all stocks in the Motor Vehicles Industry was -2.89%. For the same Industry, the average monthly price growth was -6.6%, and the average quarterly price growth was -30.44%. RNSDF experienced the highest price growth at 15.03%, while ELMS experienced the biggest fall at -25.09%.
- 5/5/22 4:57 AM: General Motors (GM, $41.17) was a top weekly gainer, with a +6.49% jump
- 4/20/22 8:58 AM: General Motors (GM, $42.08) was a top weekly gainer, with a +5.09% jump
- 3/19/22 4:49 AM: General Motors (GM, $44.82) was a top weekly gainer, with a +7.97% jump
The average weekly volume growth across all stocks in the Motor Vehicles Industry was -21.24%. For the same stocks of the Industry, the average monthly volume growth was -11.19% and the average quarterly volume growth was -26.05%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA50MA10 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 56%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.62.
30 stocks in the group of tickers exhibit a similar negative trend based on the Stochastic indicator with an average likelihood of 75%.
The most notable companies in this group are Tesla (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), NIO (NYSE:NIO).
The average market capitalization across the group is 38.3B. The market cap for tickers in the group ranges from 4.3M to 650.8B. TSLA holds the highest valuation in this group at 650.8B. The lowest valued company is GKIT at 4.3M.
- 5/25/22 7:32 AM: Tesla (TSLA, $628.16) saw a $89.8B market cap decrease this week
- 5/25/22 7:32 AM: Great Wall Motor (GWLLF, $1.58), market cap jumped by $22.8B
- 5/19/22 8:24 AM: Tesla (TSLA, $709.81), market cap dropped by $53.7B
The average weekly price growth across all stocks in the group was -0.22%. For the same group, the average monthly price growth was -7.55%, and the average quarterly price growth was -32.15%. GWLLF experienced the highest price growth at 15.13%, while RIDE experienced the biggest fall at -21.28%.
- 5/25/22 7:32 AM: Lordstown Motors (RIDE, $1.82) is a top weekly loser for penny stocks, falling -23.85%
- 5/25/22 7:32 AM: Workhorse Group (WKHS, $2.51) is a top weekly loser for penny stocks, falling -15.49%
- 5/24/22 7:00 AM: Li Auto (LI, $23.47) was a top weekly gainer, with a +6.58% jump
The average weekly volume growth across all stocks in the group was 350.44%. For the same stocks of the group, the average monthly volume growth was 29.88% and the average quarterly volume growth was 176.68%
- 5/21/22 6:24 AM: The volume for Volkswagen A G stock increased for one day, resulting in a record-breaking daily growth of 202% of the 65-Day Volume Moving Average
- 5/17/22 6:45 AM: The volume for Faraday Future Intelligent Electric stock increased for a consecutive 5 days, with an average daily gain of 123%
- 5/14/22 4:17 AM: The volume for Faraday Future Intelligent Electric stock increased for a consecutive 5 days, with an average daily gain of 86%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows