1 Auto Stock to Watch Closely Next Year

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

GM – Since the electric vehicle (EV) market is growing rapidly, quality stock General Motors (GM) should benefit, as the company is well-positioned to capitalize on its expanding EV portfolio. Therefore, this auto stock might be the one to watch closely next year. Read on….

The electric vehicle (EV) market in the United States is growing rapidly. Next year, the industry is expected to expand further due to less expensive EVs hitting the market and favorable government rules making them relatively affordable.

Renowned automaker General Motors Company (GM) should benefit from the market expansion. The company has multiple expected EV rollouts in 2023. GM is anticipated to debut the Chevrolet Equinox EV and the Chevrolet Blazer EV next year.

Additionally, the company expects its growing EV portfolio to be robustly profitable in North America by 2025, as GM aims to scale its EV capacity in the region to more than 1 million units annually.

GM projected fiscal 2022 adjusted EBIT to be between $13.5 billion and $14.5 billion, compared to its previous guidance between $13 billion and $15 billion. Its revenue is expected to grow at a 12% compound annual rate through 2025, reaching more than $225 billion.

However, the stock has declined 3.8% over the past six months and 4% over the past three months to close its last trading session at $33.32.

Here are the factors that could influence GM’s performance in the upcoming months:

Strong Financials

For the fiscal third quarter that ended September 30, GM’s revenue increased 56.4% year-over-year to $41.89 billion. Net income attributable to stockholders rose 36.6% from the prior-year quarter to $3.31 billion. Adjusted EBIT and adjusted EPS improved 46.7% and 48% from the prior-year period to $4.29 billion and $2.25, respectively.

Discounted Valuation

In terms of its forward Price/Sales, GM is trading at 0.31x, 63.1% lower than the industry average of 0.83x. The stock’s forward Price/Book multiple of 0.71 is 71.9% lower than the industry average of 2.53. In terms of forward Price/Cash Flow, it is trading at 2.49x, 75.9% lower than the industry average of 10.33x.

Favorable Analyst Estimates

The consensus EPS estimate of $1.68 for the current quarter (ending December 2022) indicates a 24.4% year-over-year increase. Likewise, the consensus revenue estimate for the same quarter of $40.63 billion reflects an improvement of 21% from the prior-year period.

Street revenue and EPS estimates for the current year (fiscal 2022) of $154.24 billion and $7.19 reflect 21.4% and 1.7% year-over-year increases, respectively. GM’s EPS is estimated to grow 15.7% per annum over the next five years.

POWR Ratings Reflect Promising Prospects

GM’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. GM has an A grade for Growth, in sync with its improving financials. The stock has a Value and Sentiment grade of B, consistent with the lower-than-industry valuation multiples and favorable analyst estimates.

In the 62-stock Auto & Vehicle Manufacturers industry, it is ranked #18.

Click here to see the additional POWR Ratings for GM (Momentum, Stability, and Quality).

View all the top stocks in the Auto & Vehicle Manufacturers industry here.

Bottom Line

GM’s EV rollouts in the wildly growing EV market should help the company boost its top line. Moreover, analysts expect significant upsides in the company’s bottom line. Therefore, the stock might be a solid buy now.

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

While GM has an overall POWR Rating of B, one might consider looking at its industry peers, Isuzu Motors Limited (ISUZY) and Honda Motor Co., Ltd. (HMC), which have an overall A (Strong Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


GM shares fell $0.02 (-0.06%) in premarket trading Wednesday. Year-to-date, GM has declined -42.95%, versus a -18.34% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GMGet RatingGet RatingGet Rating
ISUZYGet RatingGet RatingGet Rating
HMCGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Much Resistance @ 6,000 for Stocks?

The post-election rally was an exciting burst for the stock market. With that the S&P 500 (SPY) made new highs just above 6,000. Since then stocks have struggled begging the question: what happens next? 44 year investing veteran Steve Reitmeister provides the answers along with his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

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