Home / Stocks / General Motors Company [GM] moving up 8.95% – What are the long-term prospects?

General Motors Company [GM] moving up 8.95% – What are the long-term prospects?

General Motors Company [NYSE: GM] stock went up by 8.95% or 1.75 points up from its previous closing price of 19.55. The stock reached $21.30 during the last trading session. During the course of the last 5 trading session in the week, GM share price went up during 2 out of 5 days, that way gaining 2.50% in the period of the last 7 days.

GM had two major price movements with the latest trading session as the price jumped to a high of $22.21, at one point touching $20.71. The latest high is set lower that the high price recorded in the period of the last 52 weeks, set at -49.16%. The 52-week high currently stands at 41.90 distance from the present share price, noting recovery -45.47% after the recent low of 14.32.

General Motors Company [NYSE:GM]: Analyst Rating and Earnings

Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding General Motors Company [GM] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in 12/30/2019. On average, stock market experts give GM an Overweight rating. This is compared to its latest closing price of $19.55.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for General Motors Company [GM] is sitting at 4.55. This is compared to 1 month ago, when its average rating was 4.55.

Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on 05/06/2020.

Fundamental Analysis of General Motors Company [GM]

Now let’s turn to look at profitability: with a current Operating Margin for General Motors Company [GM] sitting at 4.00% and its Gross Margin at 10.20%, this company’s Net Margin is now 4.80. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 3.97, and its Return on Invested Capital has reached 6.10. Its Return on Equity is 15.50%, and its Return on Assets is 2.80%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates GM financial performance.

Turning to investigate this organization’s capital structure, General Motors Company [GM] has generated a Total Debt to Total Equity ratio of 250.22. Similarly, its Total Debt to Total Capital is 71.45, while its Total Debt to Total Assets stands at 45.86. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 160.16, and its Long-Term Debt to Total Capital is 45.73.

What about valuation? This company’s Enterprise Value to EBITDA is 6.08 and its Total Debt to EBITDA Value is 5.17. The Enterprise Value to Sales for this firm is now 0.89, and its Total Debt to Enterprise Value stands at 0.78. General Motors Company [GM] has a Price to Book Ratio of 1.23, a Price to Cash Flow Ratio of 3.51 and P/E Ratio of 4.66. These metrics all suggest that General Motors Company is more likely to generate a positive ROI.

General Motors Company [GM] has 1.44B shares outstanding, amounting to a total market cap of 30.69B. Its stock price has been found in the range of 14.32 to 41.90. At its current price, it has moved down by -49.16% from its 52-week high, and it has moved up 48.69% from its 52-week low.

This stock’s Beta value is currently 1.54, which indicates that it is 7.17% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.37. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is General Motors Company [GM] a Reliable Buy?

Shares of General Motors Company [GM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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