$GM — HOLD 📊 | 6 MONTHS THESIS

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. 🎯 FQ2 FY2026 (ends Jun) | reported Jul 21 | Rev $43.8B | Adj EPS $3.57 vs $3.18 🟢 | GAAP EPS $1.42 | GAAP op margin 3.3% 💡 The market prices GM as a deeply cyclical, low-margin legacy automaker at risk from EV disruption and China exposure (TTM P/E of 39x on depressed GAAP earnings). However, forward estimates imply a massive earnings inflection (forward P/E of 6.7x) that the market appears skeptical of. 🏢 Business Quality: 5/10 📊 Valuation: Forward P/E of 6.71x is in the bottom decile of the consumer discretionary sector; PEG of 0.35 suggests deep undervaluation relative to expected... 🔮 Catalyst: Q3 FY2026 earnings (est. Oct 20,2026) — continued execution on cost reductions, buyback pace, and 2026 full-year guidance confirmation or raise ⚖️ GM offers a compelling risk/reward at current levels with a 6.71x forward P/E, 27.7% FCF yield, and a recent earnings beat supporting

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide.