Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 28 Apr, 26 | GM | Buy | USD 74.94 | USD 80.0 | USD 84.0 | 29 days | Closed |
12.34%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. It operates through GM North America, GM International, and GM Financial segments. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, it sells trucks, crossovers, cars, and automobile parts through retail dealers, distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, the company offers various range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, it provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is based in Detroit, Michigan.
Increase in Adjusted Automotive Free Cash Flow: USD 1,269 Mn in Q1FY26 vs USD 811 Mn in Q1FY25
Increase in EBIT-Adjusted: USD 4,253 Mn in Q1FY26 vs USD 3,490 Mn in Q1FY25
Decline in Net Income: USD 2,627 Mn in Q1FY26 vs USD 2,784 Mn in Q1FY25
Decline in Revenue: USD 43,624 Mn in Q1FY26 vs USD 44,020 Mn in Q1FY25
The company faces risks from macroeconomic volatility, tariff uncertainties, EV transition execution challenges, and competitive pressures across global automotive markets
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 74.94 | 67.0 | 80.0 | 84.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Resilient Earnings Performance Amid Revenue Pressure: General Motors Company (NYSE: GM) reported a marginal decline in revenue during Q1FY26, with total revenue standing at USD 43.6 billion compared to USD 44.0 billion in Q1FY25. Despite the slight top-line contraction, the company maintained solid profitability supported by strong operational execution and cost discipline. Net income attributable to stockholders declined to USD 2.6 billion, reflecting pressure from macroeconomic and cost-related factors, including tariffs and lower volumes. However, GM demonstrated resilience through improved operating efficiency and strategic pricing actions.
Margin Expansion Driven by Operational Efficiency: A key highlight of the quarter was the strong expansion in profitability margins. EBIT-adjusted rose significantly by 21.9% YoY to USD 4.3 billion, supported by cost efficiencies, favorable foreign exchange impact, and disciplined incentive management. EBIT-adjusted margin improved to 9.7% from 7.9% in the prior year period, reflecting robust execution across core operations. North America remained a key contributor, delivering a margin of 10.1%, aided partially by tariff-related adjustments and strong pricing dynamics.
Volume and Demand Trends Reflect Market Normalization: Vehicle wholesale volumes experienced moderation during the quarter, with total wholesales declining to 899K units from 912K units in Q1FY25, indicating softer demand conditions and normalization following prior-period tariff-related pre-buying trends. Additionally, global deliveries declined by approximately 10% YoY, reflecting lower EV sales and reduced inventory build. Market share also softened to 7.8% from 8.3%, indicating competitive pressures and evolving demand dynamics across regions.
Growth in High-Margin Digital and Software Services: GM continued to expand its digital and software-driven revenue streams, which are increasingly contributing to long-term profitability. The OnStar business delivered strong momentum, with deferred revenue reaching USD 5.8 billion, reflecting growth of over 50% YoY. Additionally, Super Cruise subscriptions surged, with subscriber growth of approximately 70% YoY, highlighting strong adoption of advanced driver-assistance technologies. These high-margin revenue streams are expected to support margin expansion and diversification beyond traditional vehicle sales.
Capital Allocation and Liquidity Position Remain Strong: The company maintained a disciplined capital allocation strategy during the quarter, balancing investments and shareholder returns. GM generated adjusted automotive free cash flow of USD 1.3 billion, reflecting improved capital efficiency and lower capital expenditure. The company also returned capital to shareholders through USD 0.8 billion in share repurchases and dividend payouts, while maintaining a strong liquidity position with over USD 19 billion in automotive cash, supporting future investments and financial flexibility.
Strategic Realignment and EV Transition Efforts: GM continued to realign its EV strategy to optimize capital allocation and improve returns. The company undertook restructuring initiatives, including adjustments to EV production capacity and supplier contracts, resulting in certain non-cash and cash charges during the quarter. These actions are aimed at right-sizing the EV footprint and improving long-term profitability. Additionally, progress in international markets, particularly Brazil and China, supported earnings growth, with China operations returning to sustained profitability.
Outlook Supported by Improved Guidance and Cost Tailwinds: Management revised its FY2026 guidance, increasing EBIT-adjusted expectations to a range of USD 13.5 billion to USD 15.5 billion, driven by lower tariff-related costs and strong Q1 performance. While commodity inflation and logistics costs remain headwinds, the company expects operational efficiencies and pricing strength to offset these pressures. The improved outlook reflects confidence in GM’s ability to navigate macroeconomic challenges while sustaining profitability growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to General Motors Company (NYSE: GM) at the current market price of USD 74.94, as on 28 April,2026 at 7:18 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GM General Motors Company |
-0.03 0.04% | 81.70 | 24.17 | 6.45 | 0.39 | 1.19 | 0.95 | 9.57 |
| TSLA Tesla Inc |
-0.04 0.0094% | 423.70 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
-0.31 1.67% | 18.20 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
-0.27 0.15% | 180.22 | 8.87 | 9.34 | 0.0052 | 1.07 | 1.27 | 6.98 |
| BYDDY BYD Co Ltd ADR |
-0.43 3.54% | 11.71 | 27.15 | 20.49 | 0.18 | 3.56 | 1.12 | 7.45 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 28, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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