#5 - General Motors (NYSE:GM)
Automakers, like hotels, are also considered a traditional cyclical stock. And right now, General Motors (NYSE:GM)is one of the strongest of the automaker stocks. The reason for this optimism is strength in the electric vehicle (EV) sector. This may surprise investors who were looking elsewhere as the EV bubble blew up in late 2020. However, GM is engaged in a triple joint venture with two Chinese automakers (SAIC and Wuling Automobiles) and is making significant inroads.
GM is also showing strength off of its latest earnings report in which it beat earnings estimates by a whopping $1.20. Automakers in general, and EV manufacturers particularly will remain under pressure from the global chip shortage. And GM is not immune to that.
After more than doubling since the onset of the pandemic, GM stock has become range-bound. However, the stock looks to have support between $55 and $56 per share which makes the stock a low-risk way to invest in the emerging EV market.
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.
Read More - Current Price
- $58.53
- Consensus Rating
- Hold
- Ratings Breakdown
- 11 Buy Ratings, 6 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $56.92 (2.8% Downside)
