Stock price performance
General Motors (GM) is set to release its 4Q15 earnings on February 3, 2016. In this series, we’ll see what analysts are estimating for the company. We’ll also talk about market expectations investors should be aware of in the upcoming earnings report. First, let’s take a look at General Motors’ recent stock price movement.
The overall trend in GM’s recent earnings has been mixed to positive, as you can see in the above graph. In 3Q15, the company reported EPS (earnings per share) of $0.84, which was marginally higher than the corresponding quarter of the previous year.
As of January 25, 2016, General Motors has seen a negative price action of 14% YTD (year-to-date). This fall can be attributed to the broader market sell-off (XLY). It may also be due to investors’ fears that a slowdown in the Chinese auto market may hurt GM’s growth prospects going forward.
According to Bloomberg consensus, 57.1% of the analysts covering GM have given it a “buy” recommendation. The remaining analysts recommended a “hold.” Interestingly, no analysts out of the 21 gave GM a “sell” recommendation.
Investors should pay attention to analysts’ recommendations, as they might affect the company’s stock price movement. If a popular analyst changes his or her view, that can cause a significant short-term movement in the stock price.
As of January 25, 2016, General Motors’ consensus 12-month target price was $40.92 with a return potential of 40% from the current market price of $29.23. Colin Langan of UBS Financial has the highest price target of $50 for GM, which represents a ~71% return.
Analysts have been positive about GM throughout the year. Among GM’s peers, most of the Wall Street analysts are bullish on Toyota. Analysts’ consensus for these peers with their 12-month return potential are as follows:
- Toyota Motor (TM): 66.7% of analysts have given it a “buy” with 28% upside potential.
- Fiat Chrysler Automobiles: 50% of analysts have given it a “buy” with 49.3% upside potential.
- Ford (F): 43% of analysts have given it a “buy” with 43% upside potential.
- Tesla Motors (TSLA): 40.9% of analysts have given it a “buy” with 45.1% upside potential.