How to Trade General Motors After Q3 2024 Performance Report
Founded in 1908, General Motors is an American car manufacturer headquartered in Detroit, Michigan. Its brands include Chevrolet, Buick, GMC, Cadillac and others. It was the largest automaker in the world until it lost the top spot to Toyota in 2008. However, it is still the largest car maker in the United States, by sales.
Learn more about General Motors' third-quarter 2024 performance and what analysts are forecasting for the stock.
| Stock: | General Motors Corp. |
| Symbol for Invest.MT5 Account: | GM |
| Date of Idea: | 28 October 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $55.00 |
| Target Level: | $85.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
General Motors Q3 2024 Performance
Here are some of the key highlights from the third-quarter 2024 earnings report from General Motors:
- Earnings per share of $2.96 vs $2.43 expected
- Revenue of $48.76 billion vs $44.59 expected
- Full-year earnings forecast of $14 billion to $15 billion
General Motors has posted better-than-expected earnings per share estimates for nine consecutive quarters. This is also the third time this year that the automaker updated its guidance. On the back of the earnings report, the stock recorded its largest daily increase since March 2020.
Most of its earnings came from its North American operations, which saw a 12.9% increase from a year earlier. In contrast, its operations in China recorded a $137 million loss as it attempts to restructure its operations in the region. However, most of its earnings in North America was down to bringing forward truck production.
Unfortunately, the earnings call did not give any details regarding its China restructuring plan, or electric vehicle sales or funding plans for its new autonomous vehicle. Its chief financial officer Paul Jacobson warned that earnings will be lower in the fourth quarter due to lower wholesale volumes and seasonality but returning to cash shareholders in the form of stock buybacks will continue.
Even though General Motors's stock price is around 30% from its all-time high, the uncertainty regarding its international operations and new domestic ventures has caused more analysts to now have a hold and sell rating on the stock, as highlighted below.
General Motors Stock Forecast - What do the Analysts Say?
According to 19 analysts polled by TipRanks for an General Motors stock forecast in the past 3 months, there are currently 10 buy, 6 hold and 3 sell ratings on the stock. The highest price level for a General Motors stock forecast is $85.00 with the lowest price target at $34.00.
The average price target for a General Motors stock forecast is $56.06.
An Example Trading Idea for the General Motors Stock Price
An example trading idea for the General Motors share price could be as follows:
- Buy the stock on a pullback to $55.00 to allow for volatility.
- Target just below the highest analyst price target of $85.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 General Motors shares:
- If target is reached = $300.00 potential profit [($85.00 - $55.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as management lowered their earnings forecast for the next quarter.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in General Motors stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy General Motors Stock in 4 Steps
With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade General Motors stock today ▼▼▼
Do You See the General Motors Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance General Motors share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to speculate on rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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- The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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