General Motors Stock Up 20%, Buy Or Wait?
General Motors (GM) stock is up 19.6% in 5 trading days. Already own the stock? Might want to consider booking some profit as there is risk – specific to growth, profitability, balance sheet and downturn resilience. Consider the following data:
- Size: General Motors is a $65 Bil company with $187 Bil in revenue currently trading at $69.38.
- Fundamentals: Last 12 month revenue growth of 2.6% and operating margin of 4.3%.
- Liquidity: Has Debt to Equity ratio of 2.02 and Cash to Assets ratio of 0.1
- Valuation: General Motors stock is currently trading at P/E multiple of 21.5 and P/EBIT multiple of 11.7
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 157% within a year. See GM Dip Buy Analysis.
While we like to ride the momentum if the fundamentals check out – for GM, see Buy or Sell GM Stock – we are wary of bull traps. Specifically, it is worth trying to answer if things get really bad, and GM drops 20-30% to $49 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
Below are the details, but before that, as a quick background: GM provides trucks, crossovers, cars, and auto parts, along with safety and security services like crash response, emergency aid, roadside assistance, and navigation for retail and fleet customers.
2022 Inflation Shock
- GM stock fell 59.5% from a high of $65.74 on 4 January 2022 to $26.65 on 9 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 21 October 2025
- Since then, the stock increased to a high of $69.66 on 26 October 2025 , and currently trades at $69.38
| GM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.5% | -25.4% |
| Time to Full Recovery | 712 days | 464 days |
2020 Covid Pandemic
- GM stock fell 55.1% from a high of $37.38 on 2 January 2020 to $16.80 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 October 2020
| GM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -55.1% | -33.9% |
| Time to Full Recovery | 218 days | 148 days |
2018 Correction
- GM stock fell 34.3% from a high of $46.48 on 24 October 2017 to $30.56 on 24 October 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 January 2021
| GM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.3% | -19.8% |
| Time to Full Recovery | 811 days | 120 days |
It is a good thing to keep in mind how low GM could go during a downturn. And you should also check how the stock fared when compared with the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.