Valued at a market cap of $43.8 billion, General Motors Company (GM) is a top American multinational automotive manufacturer headquartered in Detroit, Michigan. Founded in 1908 by William C. Durant, GM designs, builds, and sells vehicles under renowned brands such as Chevrolet, Buick, GMC, and Cadillac. With a global presence, GM operates manufacturing and assembly plants across multiple countries, serving customers worldwide.

GM shares have lagged behind the broader market over the past 52 weeks. GM has returned 1.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.3%. Shares of GM are down 15% on a YTD basis, lagging behind SPX’s 3.3% fall.

Focusing more closely, General Motors has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 14% return over the past 52 weeks and a 10.2% dip on a YTD basis. 

On Apr. 29, General Motors reported robust first-quarter results, with revenue rising 2.3% year-over-year to $44 billion and adjusted EPS reaching $2.78, surpassing analyst expectations. The company benefited from a 17% increase in U.S. vehicle deliveries, driven by strong demand ahead of anticipated tariff-induced price hikes. Electric vehicle sales also saw significant growth, increasing by over 90% year-over-year. 

However, its shares dropped 3.6% in the next trading session as its net income declined by 6.6% to $2.8 billion, impacted by higher labor and warranty costs, as well as a less favorable sales mix due to production disruptions. The company also withdrew its full-year profit guidance, citing uncertainty surrounding new U.S. auto tariffs, which could cost GM up to $5 billion in 2025. 

For the current fiscal year, ending in December 2025, analysts expect GM’s EPS to grow 11.9% year-over-year to $11.86. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.

Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” 12 “Holds,” and three “Strong Sells.”

This configuration is slightly less bullish than a month ago, with 11 “Strong Buy” ratings on the stock.

On May 2, UBS Group AG (UBS) analyst Joseph Spak lowered General Motors' price target to $50 from $51, maintaining a “Neutral” rating. While GM's updated earnings outlook slightly exceeded buy-side expectations, the analyst remains cautious due to economic uncertainty, high costs, and potential capital needs. 

GM’s mean price target of $52.78 represents a premium of 16.5% from the current market prices. The Street-high price target of $105 implies a potential upside of 131.8% from the current price levels.