#9 - General Motors (NYSE:GM)
General Motors (NYSE: GM)– With the Trump administration tariffs going into effect on June 1
st, you have to view General Motors second-quarter results with a grain of salt. While their net income rose a solid 44% from the same period in 2017, the company dramatically lowered its profit outlook for 2018. They reduced their forecasted earnings per share down to $6 from a previously announced range of $6.30-$6.60. The company stated that this reduction was largely because of the increase in raw materials prices due to the tariffs. In the second quarter alone their material costs were nearly $300 million higher than in 2017. For the entire year, the company is forecasting that the combination of higher commodity prices and an unfavorable exchange rate with South America will result in a cost of about $1 billion higher than what they forecast at the beginning of the year. This is not just a problem facing General Motors but the auto industry as a whole.
About General Motors
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.
More- Current Price
- $49.46
- Consensus Rating
- Hold
- Ratings Breakdown
- 11 Buy Ratings, 7 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $61.28 (23.9% Upside)
