General Motors Stock To $47?

General Motors (GM) stock has jumped 16% during the past week, and is currently trading at $67.31. Our machine-driven multi-factor assessment suggests that it may be time to sell GM stock. We have, overall, a pessimistic view of the stock, and a price of $47 may not be out of reach. We believe there are several things to fear in GM stock given its overall Weak operating performance and financial condition. Hence, despite its Low valuation, this makes the stock look Risky.

Below is our assessment:

GM stock has jumped meaningfully recently and we currently find it risky. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds – likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.

Let’s get into details of each of the assessed factors but before that, for quick background: With $64 Bil in market cap, General Motors provides trucks, crossovers, cars, parts, and safety services including emergency response, roadside assistance, and navigation through multiple segments globally.

[1] Valuation Looks Low

This table highlights how GM is valued vs broader market. For more details see: GM Valuation Ratios

[2] Growth Is Inconsistent

• General Motors has seen its top line grow at an average rate of 8.6% over the last 3 years
• Its revenues have grown 2.6% from $183 Bil to $187 Bil in the last 12 months
• Also, its quarterly revenues declined -0.3% to $49 Bil in the most recent quarter from $49 Bil a year ago.

This table highlights how GM is growing vs broader market. For more details see: GM Revenue Comparison

[3] Profitability Appears Very Weak

• GM last 12 month operating income was $8.1 Bil representing operating margin of 4.3%
• With cash flow margin of 12.9%, it generated nearly $24 Bil in operating cash flow over this period
• For the same period, GM generated nearly $3.0 Bil in net income, suggesting net margin of about 1.6%

This table highlights how GM profitability vs broader market. For more details see: GM Operating Income Comparison

[4] Financial Stability Looks Weak

• GM Debt was $133 Bil at the end of the most recent quarter, while its current Market Cap is $64 Bil. This implies Debt-to-Equity Ratio of 208.7%
• GM Cash (including cash equivalents) makes up $30 Bil of $288 Bil in total Assets. This yields a Cash-to-Assets Ratio of 10.3%

[5] Downturn Resilience Is Very Weak

GM 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.

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 $67.31 on 22 October 2025 $67.31

 
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

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read GM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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 – S&P 500, Russell, and S&P midcap. 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.