What Has General Motors (GM) Stock Done for Investors?

Core Insights - General Motors (GM) has shown strong performance in the investment community, with a trailing-12-month revenue of $187 billion and 1.6 million units sold in the latest quarter [1] Financial Performance - Over the past five years, GM shares have produced a total return of 101%, matching the performance of the S&P 500 [3] - In the past 12 months and three years, GM has achieved total returns of 56% and 117%, respectively, with the stock currently trading at an all-time high [4] - GM reported adjusted EPS of $2.80 and revenue of $48.6 billion for the third quarter of 2025, exceeding Wall Street estimates for 13 consecutive quarters [6] Market Position and Strategy - The belief that electric vehicles would rapidly dominate the market has not materialized, reducing a key risk factor for GM, which primarily generates revenue from gas-powered cars [5] - GM's leadership has implemented a capital allocation policy that allows for stock buybacks, reducing the outstanding share count by 15% in the past 12 months [7] Valuation Metrics - Despite strong performance, GM's stock is trading at a forward price-to-earnings ratio of 6.9, indicating an attractive valuation [8] Market Challenges - GM faces cyclical demand trends, significant capital expenditures, low margins, and intense competition, which may temper investor enthusiasm [9]