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GM Stock Hits All-Time High on Strong Earnings
20 Dec
Summary
- GM shares have returned 101% over five years, matching the S&P 500.
- The company beat analyst EPS estimates for 13 consecutive quarters.
- GM's stock trades at an attractive forward price-to-earnings ratio of 6.9.
General Motors (GM) stock is currently trading at its all-time high, marking a significant resurgence for the century-old automaker. Over the past five years, GM shares have delivered a total return of 101%, equaling the performance of the S&P 500. More recently, the company has significantly outperformed the benchmark index, achieving 56% and 117% total returns in the last 12 months and three years, respectively.
The automotive giant has posted an impressive streak of financial results, exceeding Wall Street expectations for 13 consecutive quarters. In the third quarter of 2025, GM reported adjusted earnings per share (EPS) of $2.80 on $48.6 billion in revenue, driven by high demand for its SUVs. Management has also increased full-year financial guidance, leading to a 15% stock increase on the day of the announcement.
Furthermore, GM's strategic capital allocation, which includes significant free cash flow generation and stock buybacks, has benefited investors. The company has reduced its outstanding share count by 15% in the past year. Despite broader industry challenges and the rise of electric vehicles, GM's strong performance and attractive valuation, with a forward P/E ratio of 6.9, signal continued market confidence.
