GM Near 52-Week High: 4 Reasons the Stock Is Still a Strong Buy

Core Insights - General Motors (GM) stock is near its 52-week high, closing at $81.76, just 1.5% off its peak, with a 70% increase over the past six months, outperforming Ford and Tesla [1][2] - GM has positioned itself as a strong competitor in the electric vehicle (EV) market, selling 144,668 EVs in the first nine months of 2025, a 105% year-over-year increase [2] Financial Performance - GM's stock trades at a forward earnings multiple of 7X, significantly lower than Ford's 9.73 and Tesla's 265.57, enhancing its investment appeal [3] - The company has surpassed EPS estimates for 13 consecutive quarters, with a projected 13% increase in EPS for 2026 compared to 2025 [9] Market Position - GM holds a 17% market share in the U.S. as of Q3 2025, up 50 basis points year-over-year, driven by strong demand for its brands [11] - The company expects robust internal combustion engine (ICE) volumes and has plans for new product launches to meet U.S. market demand [11] China Operations - GM's restructuring efforts in China have led to a 10% year-over-year increase in Q3 vehicle sales, with market share rising to 6.8% and equity income reaching $80 million [12] - The company anticipates achieving full-year profitability in China [12] Software and Services Growth - GM's software and services segment has generated approximately $2 billion in revenue this year, with deferred revenues increasing by over 90% to $5 billion [13] - The OnStar subscriber base grew 34% to over 11 million, with expectations to exceed 12 million by year-end [13] Financial Strength and Buybacks - GM reported automotive liquidity of $35.7 billion, including $21.8 billion in cash and equivalents, indicating strong financial flexibility [15] - The company has executed over $3.5 billion in stock buybacks this year, reducing its share count by 15% year-over-year [16] Conclusion - GM presents a compelling risk-reward profile with strong earnings momentum, expanding market share, improving profitability in China, and rising software revenues, all supported by a discounted valuation and robust liquidity [17]