General Motors Released Its Q1 U.S. Sales Report, Get in on the Stock NOW

NYSE: GM | General Motors Co. News, Ratings, and Charts

GM – Leading automaker General Motors (GM) reported solid U.S. sales in the first quarter of 2023. Furthermore, analysts seem bullish about the company’s long-term prospects as it plans to move aggressively toward EV leadership. Given its sound fundamentals and growth prospects, investors should get their hands on this top auto stock. Read on….

Despite a challenging macro environment, automotive manufacturing company General Motors Company (GM) reported strong first-quarter U.S. sales, driven by its strong portfolio of Internal Combustion Engine (ICE) and Electric Vehicles (EV). The company seems positioned to capitalize on the growing EV demand.

Given its solid fundamentals and bright growth prospects, investors could consider buying this auto stock for potential gains. In this article, I have discussed several reasons why investing in this stock could be highly profitable.

This Monday, GM released its first-quarter U.S. sales report. For the first quarter of fiscal 2023, GM’s U.S. sales rose 18% year-over-year to over 600,000 vehicles delivered. ICE vehicles, including GM’s pickups and big SUVs, continue to sell well.

Its industry contemporary, Ford Motor Company (F), followed a day later. GM performed better than its archrival, which reported a 10.1% increase in its first-quarter U.S. sales to 475,906 vehicles.

GM’s sales of the internal combustion Silverado and GMC Sierra full-size pickups were up a combined 9% year-over-year, helped by an impressive 38% increase in sales to commercial fleets, a market long dominated by Ford. Moreover, the company witnessed a significant surge in EV sales this quarter.

Most of the EVs sold during the quarter were Chevrolet Bolts. Also, the company sold nearly 968 of its new Cadillac Lyriq EVs, built on its next-generation Ultium EV architecture. GM has been focused on ramping its production of Utlium-based EVs, with the new all-electric Chevrolet Equinox due later in 2023.

The automotive manufacturing company expects to build 50,000 EVs in the first half of 2023 and “double that” in the year’s second half. Also, its EV sales volumes are projected to rise significantly in 2024 and 2025.

Shares of GM have gained 11% over the past nine months to close the last trading session at $36.27. Moreover, Wall Street analysts expect the stock to hit $52.91 in the next 12 months, indicating a potential upside of 48%.

Here’s what could influence GM’s performance in the upcoming months:

Positive Recent Developments

On February 9, 2023, GM and GlobalFoundries (GFS) entered a strategic, long-term agreement to establish a dedicated capacity corridor exclusively for GM’s chip supply. GFS will manufacture for GM’s key chip suppliers at its advanced semiconductor facility in upstate New York. This agreement supports GM’s strategy to reduce the number of unique chips to needed power complex and tech-laden vehicles.

On January 31, GM and Lithium Americas Corp. (LAC) announced they would jointly invest in developing the Thacker Pass mine in Nevada. Under this agreement, GM would invest $650 million in LAC, representing the largest-ever investment by an automaker to produce battery raw materials. Generated lithium carbonate will be used in GM’s Ultium battery cells.

Solid Financials

GM’s revenue increased 28.4% year-over-year to $43.11 billion for the fourth quarter that ended December 31, 2022. The company’s adjusted EBIT came in at $3.80 billion, up 33.8% year-over-year. Also, its net income attributable to stockholders grew 14.8% year-over-year to $2 billion, and its adjusted EPS was $2.12, an increase of 57% year-over-year.

Strong Earnings Guidance

The company expects its core auto operations to perform at a consistently strong level in 2023. For the full-year 2023, GM expects its net income attributable to stockholders to come in the range of $8.70 billion to $10.10 billion. It expects adjusted EBIT between $10.50 billion and $12.50 billion, and its adjusted EPS is expected to be between $6 to $7. 

Furthermore, GM expects its total revenue to grow at a 12% CAGR through 2025, reaching more than $225 billion, driven by EV volume and software revenue growth. Revenue from EVs is projected to be more than $50 billion in 2025.

Favorable Analyst Estimates

Analysts expect GM’s revenue for the second quarter (ending June 2023) to increase 12.1% year-over-year to $40.10 billion. The consensus EPS estimate of $1.60 for the current quarter indicates an improvement of 40.6% year-over-year. Moreover, the company topped the consensus EPS estimate in three of the trailing four quarters.

Furthermore, the company’s revenue and EPS for the fiscal year (ending December 2024) are expected to increase 2% and 1.1% year-over-year to $164.70 billion and $6.21, respectively.

Discounted Valuation

In terms of forward non-GAAP P/E, GM’s 5.90x is 58.8% lower than the 14.31x industry average. Likewise, its forward EV/Sales of 0.89x is 20.8% lower than the industry average of 1.12x. Also, the stock’s 6.75x forward EV/EBITDA is 29% lower than the 9.50x industry average.

In addition, in terms of forward Price/Book, the stock is trading at 0.67x, 74.2% lower than the industry average of 2.59x. Its forward Price/Cash Flow multiple of 3.35 is 61.5% lower than the industry average of 8.72.

POWR Ratings Show Promise

It’s no surprise that GM has an overall rating of B, equating to Buy in our POWR Ratings system. The POWR Ratings are calculated by taking into account 118 different factors, each weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. GM has a B grade for Value, consistent with its lower-than-industry valuation.

In addition, the stock has a B grade for Growth, in sync with its robust financials and impressive growth history.

GM is ranked #20 out of 57 stocks in the Auto & Vehicle Manufacturers industry. Click here to access GM’s Momentum, Stability, Sentiment, and Quality ratings.

Bottom Line

Automotive giant GM’s revenue has increased at a 4.5% CAGR over the past three years. During the same period, the company’s EBITDA and net income have grown at 11.8% and 13.9% CAGRs, respectively. Furthermore, GM’s long-term prospects look promising, driven by increasing demand for its EV and ICE vehicle offerings, strategic investments, and partnerships.

Given its financial strength, solid growth prospects, and low valuation, it could be wise to buy this top auto stock after its solid first-quarter U.S. sales.

How Does General Motors Company (GM) Stack up Against Its Peers?

GM has an overall POWR Rating of B. Check out these other stocks within the Auto & Vehicle Manufacturers industry with an A (Strong Buy) rating: Stellantis N.V. (STLA), Suzuki Motor Corp. (SZKMY), and Renault (RNLSY).

Consider This Before Placing Your Next Trade…

We are still in the midst of a bear market.

Yes, some special stocks may go up like the ones discussed in this article. But most will tumble as the bear market claws ever lower this year.

That is why you need to discover the “REVISED: 2023 Stock Market Outlook” that was just created by 40 year investment veteran Steve Reitmeister. There he explains:

  • 5 Warnings Signs the Bear Returns Starting Now!
  • Banking Crisis Concerns Another Nail in the Coffin
  • How Low Will Stocks Go?
  • 7 Timely Trades to Profit on the Way Down
  • Plan to Bottom Fish For Next Bull Market
  • 2 Trades with 100%+ Upside Potential as New Bull Emerges
  • And Much More!

You owe it to yourself to watch this timely presentation before placing your next trade.

REVISED: 2023 Stock Market Outlook > 


GM shares fell $0.21 (-0.59%) in premarket trading Wednesday. Year-to-date, GM has gained 5.86%, versus a 7.10% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GMGet RatingGet RatingGet Rating
FGet RatingGet RatingGet Rating
GFSGet RatingGet RatingGet Rating
LACGet RatingGet RatingGet Rating
STLAGet RatingGet RatingGet Rating
SZKMYGet RatingGet RatingGet Rating
RNLSYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

3 High-Yield Dividend Stocks to Boost Your Portfolio

Even though inflation appears to be cooling down, it still remains above the Fed’s 2% target. Amid ongoing geopolitical tensions, investors could consider looking into high-yield dividend stocks, Verizon Communications (VZ), Altria Group (MO), and Ares Capital (ARCC). Keep reading...

3 Fintech Stocks Revolutionizing Financial Services

Fintech is causing a revolutionary shift in the financial services market and this could be the right time to scoop up fundamentally strong fintech stocks like PayPal Holdings (PYPL), NerdWallet (NRDS), and Qifu Technology (QFIN). Read more...

3 Value Stocks With Strong Fundamentals to Buy Now

Value investing is highly favored as it focuses on purchasing undervalued stocks with solid fundamentals, providing the potential for high returns with lower risk and a disciplined, long-term approach. Therefore, it could be wise to invest in fundamentally sound, value stocks Expedia Group (EXPE), Incyte (INCY), and Albertsons Companies (ACI) for substantial long-term returns. Keep reading...

Stock Alert: Breakout or Fake Out?

The S&P 500 (SPY) officially made new highs this week. Perhaps a reason to celebrate more gains on the way...or perhaps there are signs this move is hollow leading to more downside soon on the way. To help solve this riddle, 44 year investment veteran Steve Reitmeister shares his views along with a trading plan and top picks to stay on the right side of the action. That is what Steve Reitmeister will cover in his latest commentary below. Read on for more...

Read More Stories

More General Motors Co. (GM) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GM News