Wall Street bullish on GM after strong Q4 earnings, expects 17% upside

From Nasdaq: 2025-02-03 09:22:00

General Motors (GM) saw its earnings estimates for 2025 and 2026 increase after releasing impressive fourth-quarter 2024 results. Full-year revenues grew 9% to $187 billion, with record earnings per share of $10.60. GM expects 2025 EPS between $11-$12. Analysts are optimistic about GM’s stock and upwardly revising earnings estimates.

Despite challenges like ICE volume decline and tariffs, GM is making strides in electrification. It was the second best-selling EV maker in the US in 2024, with a diverse lineup. GM’s EV portfolio became “variable profit positive” in Q4 2024. Deals with various companies have strengthened its EV supply chain.

GM is restructuring its China operations to drive profitability, seeing positive equity income in Q4 2024. Liquidity remains strong with $35.5 billion in automotive liquidity. Investor-friendly initiatives like dividends and buybacks add appeal. GM stock is undervalued with a forward P/E ratio of 4.36 and a Value Score of A.

Wall Street is bullish on GM, expecting a 17% upside from the current level. GM’s attractive valuation, strong earnings growth, and positive estimate revisions make it a compelling buy. With a Zacks Rank #2 (Buy), GM’s stock offers a mix of value, growth potential, and resilience.



Read more at Nasdaq: Wall Street Turns Bullish on GM Post Q4 Earnings: Time to Buy?