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Mar 12, 2020
GM (GM, $26.00) and Ford (F, $5.90) get price target cuts from Morgan Stanley analyst, on Coronavirus risks

GM (GM, $26.00) and Ford (F, $5.90) get price target cuts from Morgan Stanley analyst, on Coronavirus risks

Automobile giants like General Motors  and Ford  got a lowered outlook from a Morgan Stanley analyst due to coronavirus impact.

Analyst Adam Jonas reduced his 2020 U.S. Seasonally Adjusted Annual Rate (SAAR) from 15.5 million from 16.5 million. Jonas cited potential demand shock that could result from coronavirus fears would weigh on automaker's shares. According to Jonas,  weakening consumer sentiment could lead to  consumers potentially holding off  purchases of expensive consumer discretionary items such new car that’s sells for around  $35,000.

Jonas further suggested that if lending conditions tighten on recession risks, this could further impact  the SAAR.

Even used car prices could face pricing pressure, according to Jonas.

Jonas slashed his price target for General Motors to $42 from $46 a share, while cutting his Ford target to $10 from $11.

Related Ticker: GM

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


GM in upward trend: price may jump up because it broke its lower Bollinger Band on August 17, 2026

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 39 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

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 347 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 261 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

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 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 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 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .

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 .

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 (1.214) is normal, around the industry mean (8.896). P/E Ratio (38.299) is within average values for comparable stocks, (580.446). GM's Projected Growth (PEG Ratio) (0.301) is slightly lower than the industry average of (3.071). Dividend Yield (0.008) settles around the average of (0.038) among similar stocks. P/S Ratio (0.434) is also within normal values, averaging (3.625).

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 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 (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

The most notable companies in this group are Tesla (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), 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 71.94B. The market cap for tickers in the group ranges from 3.72K to 1.45T. TSLA holds the highest valuation in this group at 1.45T. The lowest valued company is ZAPPF at 3.72K.

High and low price notable news

The average weekly price growth across all stocks in the Motor Vehicles Industry was -7%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was -20%. LI experienced the highest price growth at 5%, while SSM experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Motor Vehicles Industry was -37%. For the same stocks of the Industry, the average monthly volume growth was 16% and the average quarterly volume growth was -41%

Fundamental Analysis Ratings

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

Valuation Rating: 54
P/E Growth Rating: 60
Price Growth Rating: 68
SMR Rating: 89
Profit Risk Rating: 91
Seasonality Score: -30 (-100 ... +100)
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a manufacturer of cars, trucks and automobile parts

Industry MotorVehicles

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Industry
Motor Vehicles
Address
1240 Woodward Avenue
Phone
+1 313 667-1500
Employees
156000
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https://www.gm.com
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