Group 1: General Motors' Supply Chain and Performance - General Motors has focused on strengthening its supply chain, particularly in securing battery raw materials and rare earths from North America, which is beginning to yield positive results [1][7] - The company reports minimal impact from the Novelis situation and has secured alternative suppliers, indicating resilience against supply disruptions [2][7] - GM is cautiously optimistic about the chip supply issues in China, actively assessing risks and identifying backup suppliers to mitigate potential disruptions [2][3][7] Group 2: Financial Performance and Valuation - General Motors has outperformed the Zacks Automotive-Domestic industry over the past six months, with shares gaining 68.4% compared to the industry's 45.6% growth [6] - From a valuation perspective, GM appears undervalued with a forward price/sales ratio of 0.41, significantly lower than the industry's 3.48 [9] - The Zacks Consensus Estimate for GM's EPS has seen upward adjustments, with the 2025 estimate increasing by $0.01 and the 2026 estimate by $0.06 in the past week [11]
Is General Motors' Sourcing Strategy Reducing Disruption Risks?