Core Insights - General Motors (GM) anticipates a recovery in North America EBIT margins to the 8-10% range by 2026, up from 6.8% in 2025, driven by lower costs and improved product mix [1][10] Group 1: Margin Recovery Drivers - Lower electric vehicle (EV) losses are expected to significantly contribute to margin recovery, with GM projecting reduced costs associated with excess EV capacity and slower demand in 2025 [2] - A $1 billion year-over-year benefit from lower warranty expenses is anticipated in 2026, as warranty cash outflows stabilize and accruals align with cash trends [3] - Regulatory relief is projected to yield savings of $500-$750 million from reduced compliance costs related to emissions and fuel economy regulations, further supporting margins [3] Group 2: Product and Market Dynamics - GM benefits from strong demand for full-size pickups, SUVs, and profitable crossovers, maintaining low inventory and incentives to protect margins [4] - The company expects a decline in net tariff impact year-over-year, with gross tariff costs remaining high but offset by pricing actions and cost reductions [5] Group 3: Competitive Landscape - Ford faces challenges with uneven margin recovery due to elevated EV-related losses and warranty costs, despite profitability in its traditional internal combustion engine (ICE) business [7] - Stellantis is focusing on rebuilding margins through new product launches and a significant investment in domestic production, but near-term margins are pressured by higher incentives and warranty costs [8] Group 4: Stock Performance and Valuation - GM shares have increased by 76% over the past year, outperforming the industry [9] - The company appears undervalued with a forward price/earnings ratio of 6.68 compared to the industry's 81.6 [12]

Core Insights - Ford Motor Company (NYSE:F) is recognized for having one of the lowest forward PE ratios among stocks, with Piper Sandler maintaining an Overweight rating and a price target of $16, citing potential warranty enhancements as a significant upside for 2026 [1] - Piper Sandler estimates that resolving quality issues could lead to an EBIT increase of up to $2.8 billion in 2026 compared to 2025, translating to a $0.54 year-over-year increase in EPS, bolstering Ford Pro's performance, which is noted as Ford's highest-margin business [3] - Barclays analyst Dan Levy has reissued a Hold rating on Ford, raising the price target from $12 to $13, reflecting a revised forecast for the mobility segment in the Q4 earnings outlook [4] Financial Performance - Ford has historically outspent General Motors on warranty costs as a percentage of vehicle price in 24 of the last 27 quarters, indicating ongoing quality concerns [1] - The potential EBIT increase of $2.8 billion in 2026 could significantly enhance Ford's financial performance if quality issues are addressed [3] Business Segments - Ford designs, manufactures, markets, and services a comprehensive range of vehicles, including cars, trucks (notably the F-Series), SUVs, commercial vans, and luxury Lincoln models [4] - Ford Pro is highlighted as the company's highest-margin business, with access to the housing sector, which could further contribute to earnings growth [3]

The electric vehicle (EV) market's growth has slowed down in recent years, but most analysts still expect EVs to continue replacing gas-powered cars through the end of the decade. According to Grand View Research, the global EV market could still expand at a 32.5% CAGR from 2025 to 2030. To capitalize on that secular trend, investors should consider buying a few shares of Rivian (NASDAQ: RIVN) and BYD (OTC: BYDDY). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the ...

Core Viewpoint - Major U.S. stock market indices experienced a pullback on January 30, 2026, primarily due to struggles in technology shares and the nomination of Kevin Warsh to lead the Federal Reserve, which has created uncertainty among investors regarding future monetary stability [1]. Group 1: Dividend Growth Stocks - Equity investors may find more stability in steady dividend-growth stocks rather than high-beta growth names, as companies with a history of increasing payouts indicate balance sheet resilience and cash flow durability [2]. - Stocks with a strong history of year-over-year dividend growth are likely to form a healthier portfolio with greater capital appreciation potential compared to simple dividend-paying stocks or those with high yields [3]. - Dividend growth stocks are typically associated with mature companies that are less vulnerable to market volatility, providing a hedge against economic and political uncertainties [4]. Group 2: Investment Criteria - Key investment criteria for selecting dividend growth stocks include a sustainable business model, a long track record of profitability, rising cash flows, good liquidity, a strong balance sheet, and value characteristics [5]. - Stocks with a 5-year historical dividend growth greater than zero, sales growth greater than zero, and earnings per share (EPS) growth greater than zero are highlighted as strong candidates for investment [7]. - A price/cash flow ratio lower than the industry median indicates that a stock is undervalued, while a 52-week price change greater than the S&P 500 ensures that the stock has appreciated more than the broader market [8]. Group 3: Selected Dividend Growth Stocks - Ford Motor (F) has a steady dividend growth with a yield of 4.32% and projected revenue improvement of 6.4% for the first quarter of 2026 [9][11]. - Applied Materials (AMAT) combines dividend growth with a long-term earnings growth rate of 11.70% and a yield of 0.57%, with a projected revenue improvement of 2.3% for fiscal 2026 [9][13]. - Alfa Laval (ALFVY) is expected to see a revenue improvement of 5.9% in 2026, with a long-term earnings growth rate of 8.50% and a yield of 1.31% [9][14]. - Tapestry (TPR) has a projected revenue improvement of 5.6% for fiscal 2026, a long-term earnings growth rate of 10.4%, and a yield of 1.26% [9][15]. - Donaldson (DCI) is projected to have a revenue improvement of 3.5% in 2026, with a long-term earnings growth rate of 10% and a yield of 1.18% [9][16].

Core Viewpoint - Ford Motor Company presents an attractive long-term investment opportunity due to its low price-to-earnings ratio, strong dividend yield, and potential in profitable segments like full-size trucks and electric vehicles, but it faces significant challenges that need addressing [1][2][10] Group 1: Investment Appeal - The stock is seen as a value proposition with a price-to-earnings ratio of 11 [1] - Ford offers a lucrative dividend yield of nearly 4.5%, supplemented by special dividends during strong cash flow periods [1] - The company has a strong position in profitable segments such as full-size trucks, SUVs, and its commercial Ford Pro business, which generates recurring revenue [2] Group 2: Challenges to Address - Ford recorded a significant increase in recalls, with 153 recalls affecting approximately 13 million vehicles in the previous year, which negatively impacts its brand image and customer acquisition efforts [3][4] - Warranty costs surged by $800 million in Q2 2024, contributing to missed Wall Street estimates, highlighting the financial burden of recalls [4] - The Model-e division, responsible for electric vehicles, incurred losses exceeding $5 billion in 2024, indicating a need for strategic adjustments [7] Group 3: Strategic Initiatives - Ford plans to launch a more affordable midsize electric pickup by 2027, priced around $30,000, with expectations of early profitability [8] - The company has taken a $19.5 billion special charge to shift its strategy towards hybrids, which may offer better profitability compared to full-electric vehicles [9] - Innovations in assembly line processes and a new low-cost Universal EV Platform are part of Ford's strategy to reverse losses in the EV segment [8]

General Motor shares are trading at a record. That's after the company says it's expecting another year of strong financial performance. This comes as the automaker sees higher demand for SUVs and trucks and pulls back on its electric vehicle plans.Here's what the CFO told our Pramanian earlier. >> If you think about where we've been for the last few years, we were tooling up and scaling up to produce a million EVs a year because that's what the uh government was requiring under the prior administration. So ...

Core Insights - General Motors reported a full-year 2025 net income attributable to stockholders of $2.7 billion, with an EBIT-adjusted of $12.7 billion. However, the fourth-quarter 2025 net income was a loss of $3.3 billion, with an EBIT-adjusted of $2.8 billion [1][2]. Financial Performance - The fourth-quarter net income was impacted by over $7.2 billion in special charges related to the realignment of electric vehicle capacity and adjustments to consumer demand for EVs, as well as changes in U.S. government policies [2]. - For 2025, GM's revenue was $185.0 billion, a decrease of 1.3% from $187.4 billion in 2024. The net income attributable to stockholders fell by 55.1% from $6.0 billion in 2024 to $2.7 billion in 2025 [11][21]. - The EBIT-adjusted for 2025 was $12.7 billion, down 14.6% from $14.9 billion in 2024 [11][21]. 2026 Guidance - GM anticipates a strong financial performance in 2026, with guidance for net income attributable to stockholders between $10.3 billion and $11.7 billion, and EBIT-adjusted between $13.0 billion and $15.0 billion [4][11]. - The company expects automotive operating cash flow for 2026 to be between $19.0 billion and $23.0 billion, with adjusted automotive free cash flow projected between $9.0 billion and $11.0 billion [4][11]. Shareholder Returns - GM's Board of Directors approved a quarterly dividend increase of $0.03 per share to $0.18 per share, payable on March 19, 2026 [5]. - A new share repurchase authorization of $6.0 billion was also announced, reflecting the company's commitment to returning capital to shareholders [6][7]. Operational Highlights - As of December 31, 2025, GM had 904 million shares outstanding, a reduction from 995 million at the end of 2024 [8]. - The company reported a significant increase in adjusted automotive free cash flow of 51.2% in the fourth quarter of 2025 compared to the same period in 2024 [9].

Core Viewpoint - The Trump administration is promoting efforts to reduce car prices by rolling back regulations and shifting focus away from electric vehicles (EVs) during a tour of the Midwest auto industry [1][4]. Regulatory Changes - U.S. Transportation Secretary Sean Duffy criticized the ambitious vehicle emissions regulations established during the Biden administration, arguing that they are illegal and unattainable [2][6]. - The new fuel economy standard proposed is 35 miles per gallon, which Duffy believes will lower prices and allow car companies to produce more desirable products for consumers [2][6]. Market Dynamics - The government is moving away from mandating market directions that do not align with consumer demand, as stated by EPA head Lee Zeldin [4]. - The administration has eliminated a $7,500 EV tax credit and rescinded California's EV regulations, indicating a shift in policy towards combustion engine vehicles [4][6]. Consumer Preferences - Duffy emphasized that the government should not dictate the types of cars produced, advocating for innovation driven by consumer demand [6]. - He clarified that the administration's stance is not an opposition to EVs but rather a rejection of using government policy to promote EVs at the expense of combustion engine vehicles, which are preferred by many Americans [7]. Sales Trends - Vehicle sales in the U.S. increased by 2.4%, with the average new car price reaching a record $50,326, driven by consumer preference for more expensive SUVs and trucks [9][10]. - Despite tariffs on imported vehicles, the impact on consumer prices has been minimal, according to U.S. Trade Representative Jamieson Greer [11].

Core Insights - Hyundai Motor America received two Pinnacle Awards for its partnership with UCI Health, winning the Platinum award in Health and Safety Leadership and the Diamond Award in Corporate Social Responsibility [1][2]. Group 1: Partnership and Awards - The collaboration with UCI Health aims to enhance community health and safety in Orange County, California, where Hyundai's North America headquarters is located [1][2]. - Hyundai has been involved in child passenger safety education programs since 2022, partnering with over 10 hospitals to promote best practices for securing children in car seats [2][3]. - The partnership with UCI Health includes support for diabetes care programs and free car seat safety inspections for families in need [3][4]. Group 2: Corporate Social Responsibility - Hyundai Hope is the corporate social responsibility initiative focused on improving societal well-being through health, safety, education, and sustainability [6]. - The initiative emphasizes a holistic approach to community health by combining vehicle safety advocacy with investments in health services for underserved populations [4][6]. Group 3: Company Operations - Hyundai Motor America operates a technology-rich lineup of vehicles and has significant operations in the U.S., including a manufacturing plant in Alabama and a new Metaplant in America [7]. - The company is investing $26 billion in the U.S. from 2025 to 2028, reflecting its commitment to growth and innovation in the automotive sector [7].

Core Insights - Hyundai is enhancing its racing strategy for the 2026 season by introducing a third driver for the Rolex 24 at Daytona, aiming to recognize outstanding drivers from outside IMSA [1] - The team is confident in its ability to defend its Manufacturer, Team, and Driver Championships with a mix of returning veterans and new talent [1] Team Lineup - Bryan Herta Autosport (BHA) will feature eight returning drivers across four entries, including key veterans like Harry Gottsacker, Mason Filippi, Bryson Morris, and Mark Wilkins, who has a history of race victories with BHA [3] - New additions to the team include Andre Castro, who had a successful 2025 season, and international talent Josh Buchan, who won a TCR World Tour event at the Macau Grand Prix [4][5] Season Overview - The 2026 season will kick off with the Roar Before the Rolex 24 from January 16-18, followed by the BMW M Endurance Challenge at Daytona on January 23 [8] - The Elantra N TCR cars will maintain a dynamic livery featuring Performance Blue and the signature N logo, symbolizing Hyundai's racing identity [7] Philanthropic Initiatives - Hyundai Hope on Wheels will continue its campaign by donating $100 for every lap led by a Hyundai vehicle, with a goal to support pediatric cancer research [9] - The initiative has raised nearly $80,000 in 2024 and 2025 combined, with additional donations tied to podium finishes and race wins [11] Corporate Background - Hyundai Motor America is committed to a technology-rich lineup of vehicles and is investing $26 billion in the U.S. from 2025 to 2028, which includes significant operations and facilities across the country [12]