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Sarah Patel's Avatar
published in Blogs
Feb 08, 2022

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.

Related Ticker: GM

GM in upward trend: price expected to rise as it breaks its lower Bollinger Band on May 16, 2023

GM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 49 cases where GM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

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 71 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 May 26, 2023. You may want to consider a long position or call options on GM as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for GM just turned positive on May 17, 2023. Looking at past instances where GM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. 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 310 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The 50-day moving average for GM moved below the 200-day moving average on April 25, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

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 May 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Fear & Greed

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 Price Growth Rating for this company is (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 (best 1 - 100 worst), pointing to slightly better than average 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 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 (0.664) is normal, around the industry mean (9.572). P/E Ratio (5.157) is within average values for comparable stocks, (95.986). Projected Growth (PEG Ratio) (1.354) is also within normal values, averaging (5.867). GM has a moderately low Dividend Yield (0.008) as compared to the industry average of (0.041). P/S Ratio (0.298) is also within normal values, averaging (73.631).

The Tickeron Seasonality Score of (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 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 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are Tesla (NASDAQ:TSLA), Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), NIO Inc. (NYSE:NIO).

Industry description

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.

Market Cap

The average market capitalization across the Motor Vehicles Industry is 28.14B. The market cap for tickers in the group ranges from 2.87M to 637.58B. TSLA holds the highest valuation in this group at 637.58B. The lowest valued company is NVYAF at 2.87M.

High and low price notable news

The average weekly price growth across all stocks in the Motor Vehicles Industry was -1%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was -10%. GKIT experienced the highest price growth at 42%, while RIDE experienced the biggest fall at -20%.

Volume

The average weekly volume growth across all stocks in the Motor Vehicles Industry was 29%. For the same stocks of the Industry, the average monthly volume growth was 54% and the average quarterly volume growth was 51%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 48
P/E Growth Rating: 68
Price Growth Rating: 57
SMR Rating: 68
Profit Risk Rating: 88
Seasonality Score: 37 (-100 ... +100)
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Technical Analysis# Of IndicatorsAvg. Odds
   
   
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A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a manufacturer of cars, trucks and automobile parts

Industry MotorVehicles

Profile
Fundamentals
Details
Industry
Motor Vehicles
Address
300 Renaissance Center
Phone
+1 313 667-1500
Employees
167000
Web
https://www.gm.com
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GM and

Correlation & Price change

A.I.dvisor indicates that over the last year, GM has been closely correlated with F. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if GM jumps, then F could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To GM
1D Price
Change %
GM100%
+0.21%
F - GM
85%
Closely correlated
+4.14%
STLA - GM
69%
Closely correlated
-1.01%
HMC - GM
68%
Closely correlated
+0.70%
RACE - GM
62%
Loosely correlated
-1.17%
TM - GM
60%
Loosely correlated
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