General Motors stock: buy or sell
Jan 16th, 2021
General Motors stock brief
- General Motors tanked a -3.03% after marking new highs on Thursday
- The price is currently higher than the upper Bollinger band, which often indicates a short-term correction
- The stock is configuring an uptrend pattern since May 2020, when it bottomed at $20.12. This rally marked a 148.36% gain
- Argus posted a strong buy rating for General Motors on Thursday, forecasting $56.00
- General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.
Should I buy General Motors stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $GM stock a buy?
In the current situation of General Motors there is not any eligible buy setup. This doesn't mean we expect a selloff for $GM in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell General Motors stock?
When you are a novel trader and you own a stock with some profit, it's really hard to decide the correct moment to sell and get your benefits. Similarly to when we have to buy shares, determining when is appropiate to sell is not a whimsy decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very easy to follow but are only applicable for selling stocks you already own, not for selling short $GM stock
As a golden rule, you must never mantain an investment that produces greater losses than those expected by the time of the buy. The timing to sell shares should always be dictated by the stop-loss (automatic or manual)
Is it time to sell General Motors stock?
In the current situation of General Motors there is not any eligible sell setup, so General Motors stock holders with operations in profit can keep their positions
General Motors ratings
In the last month, 6 ratings were published for General Motors. General sentiment is bullish, with 6 out of 6 publishing optimistic outlooks
|Dec 17th, 2020|
|Dec 21st, 2020|
|Jan 13th, 2021|
|Nomura|| Neutral → |
|Nomura Instinet|| Neutral → |
|Jan 14th, 2021|
|Argus|| Neutral → |
General Motors stock analysis
Since in May 2020, General Motors has been drawing an uptrend that so far marked an amazing 148.36%. During this uptrend, the price offered some entry points on the breakouts. Latest low was on January 5, when price bounced at $40.04. Currently, it moves in a consolidation between its last top ($51.87) and its last bottom ($40.04)
$GM at All-time Highs
General Motors did it again, and reached new all-time highs (ATH) on Thursday at $51.87
Supports and resistances
The current resistance levels are:
The current supports are:
Price levels above or below the Bollinger Bands signal that the price has has trended strongly to extreme upward or downward values. For this case, the price is over the upper band, which should mean a possible short-term adjustment (at least) until it is below the band
Relative strength index
Broke through the 70 level Friday, with a reading of 71.46. Climbing above the overbought zone is not a sell signal, as shares can be in the overbought zone for many, many weeks and continue to gain
General Motors stock price history
General Motors went public priced at an adjusted price1 of $26.78 on Nov 2010. Since then, GM stock surged by 86.59%, with an average of 8.66% per year. If you had invested $1,000USD in General Motors stock at that time, it would worth $1,865.94 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for General Motors stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions publish their price estimates based on the stock price action and the company fundamental data. Most of these predictions follow the release of new fundamental information by the company, and usually. If you are a small trader you don't have to invest based on these predictions.
Averaging all price targets exposed below, the estimated price for General Motors stock is $55.33. General Motors closed at $49.97 on Friday, that is a 9.69% than the predicted price.
|Brokerage firm||Price target|
|Dec 17th, 2020|
|Barclays||$45.00 → $49.00|
|Dec 21st, 2020|
|Benchmark||$47.00 → $51.00|
|Jan 13th, 2021|
|Barclays||$49.00 → $56.00|
|Nomura||$27.00 → $60.00|
|Nomura Instinet||$27.00 → $60.00|
|Jan 14th, 2021|
Earnings and financials
General Motors ($GM) hosted the financial call and released the report last November. General Motors topped analysts estimates and presented of $2.83, that is a 105.07% surprise compared to the initial predictions of $1.38. Despite this, reported sales of $35.5 billion were in line with Wall St. forecasts.Same quarter one year ago, reported EPS was $1.72, so current EPS means an increase of 64.53%. Turnover only changed on an annualized basis in the , from $354.7B to $354.8B last quarter.
General Motors ($GM) presents quarterly financial report early next February. Wall Street analysts predict of $1.82, that is a 35.69% lower than previous quarter.
General Motors competitors
General Motors belongs to the Auto Manufacturers industry, which contain industry peers.
The following are General Motors biggest competitors:
|Company||Market cap||Rating||Bullish ratings1|
|General Motors ($GM)||$61.5B|| ||6|
|Toyota Motor (TM)||$212.4B||Neutral||0|
|Ford ($F)||$40.4B|| ||1|
|Tata Motors (TTM)||$8.3B||Neutral||0|
1 In the last 30 days.
General Motors performance
To better understand General Motors performance you must compare its gains with other related stocks in same sector or industry.. For General Motors, the benchmark is made against Tesla, Toyota Motor, Honda, Ford, Gentex and Tata Motors.
|General Motors ($GM)||19.60%||52.00%||90.70%|
|Toyota Motor (TM)||-3.70%||13.60%||16.70%|
|Tata Motors (TTM)||39.70%||98.60%||152.30%|
Disclaimer:The opinions given in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not know the specific situations of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are provided for general educational purposes only
General Motors summary
|Friday, January 15th, 2021|
|Day range||$49.26 - $51.4|
|Average true range||$2.46|
|50d mov avg||$42.64|
|100d mov avg||$37.16|
|200d mov avg||$31.18|
|Earnings date||February 3rd, 2021|
Frequently asked questions
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Is General Motors stock a buy or sell?
Will GM go up?
Latest General Motors news
- CNN MoneyHonda teams up with GM on self-driving carsOct 3, 2018