What changed
$GM — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $39.3B | EPS $3.70 vs $2.64 🟢 | Margin 7.4%
💡 Consensus expected EPS of ~$2.64, but GM delivered $3.70, driven by strong North American truck margins and cost discipline; the market has not fully repriced the earnings power, with FY26 EPS estimates still at ~$12.88, implying a P/E of only 6.3x vs. historical mid-cycle auto range of 7-9x.
📉 Reward/risk: 2.2:1
🏢 Business Quality: 6/10 - Dominant North American truck/SUV franchise with improving margins but structurally challenged by cyclicality, EV investment drag, and high union cost exposure.
📊 Valuation: cheap — Forward P/E 6.3x vs. 5-year average of 7.8x and peers (F ~5.5x, STLA ~4.5x, but GM has better growth); EV/EBIT 12.4x; FCF yield ~7.8%,...
🔮 Catalyst: Q2 2026 earnings release (expected late July/early August)
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/GM0614