General Motors (GM)
NYSEConsumer DiscretionaryAuto - ManufacturersSnapshot 2026-09-04
$87.76+0.62%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryAuto - ManufacturersSnapshot 2026-09-04
Broken: Primary pillar broken — EPS growth to at least $12.5 per share in FY26: EPS guidance mid $9.98 vs $12.50 target.
GM is growing earnings with EPS guidance raised to $12.5 in 2026. Free cash flow is strong at about $10 billion. The company leads in electric vehicle sales and secured key chip supply deals. Profit margins and dividends are stable and improving.
GM faces challenges from declining EV demand and recent layoffs. Revenue growth is weak with recent cuts in guidance. Recalls and strategy pressure may hurt brand and EBIT growth.
The price is about 40% below our fair value near $126, reflecting cautious revenue growth of about 2%. Our fair value is well above the Street median, showing upside if GM meets its targets.
Breaks if: Dividend per share falls below $0.15
Breaks if: EPS falls below $11.0 per share in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on electric vehicles. The current thesis is mixed, with management making progress on guidance and dividends, but facing sector challenges.
The valuation is considered cheap compared to peers, with a notable expectations gap. The market seems to have priced in some potential for growth, but there is a lack of strong recent performance relative to industry competitors.
Fundamentals are expected to remain neutral in the near term, with management on track to raise guidance and maintain dividends. However, there is moderate risk due to potential economic pressures and a history of misses in the industry.
The thesis hinges on GM's ability to maintain its guidance and manage inflation risks. Additionally, the performance of sector leaders like Tesla and Ford could influence GM's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a better outlook. GM raised its EBIT-adjusted guidance for 2026. This indicates strong demand and operational strength. There are no new threats impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
GM aims to increase its EBIT-adjusted guidance for the fiscal year 2026.
Breaks if: EV sales decline significantly or supply deals fail
Breaks if: Free cash flow falls below $9 billion in FY26
Over the next 1 to 3 years, GM's performance will depend on its operational execution and external economic factors. Not investment advice.