General Motors closed at about $79.58 on June 17, down 3.5% in a weak tape — but step back from the one-day move and this is the best risk/reward in the sector. The company just beat Q1 by 40%, raised full-year guidance, and authorized a fresh $6.0 billion buyback, and the market still hands it an 8x multiple.
| Metric | Value |
|---|---|
| Close (Jun 17 2026) | ~$79.58 (-3.5%) |
| 52-week range | $47.63 – $87.62 |
| Trailing P/E | ~8x |
| Analyst avg target | ~$92–$98 (Buy) |
The bull case
Q1 adjusted EPS came in at $3.70 against a ~$2.64 estimate, a 40% surprise, with a 10.1% North America EBIT margin and — crucially — shrinking EV losses, the line that has scared this stock for years. Management raised FY2026 adjusted EBIT guidance to $13.5–$15.5 billion and re-loaded the buyback at $6 billion, which on a $72 billion market cap retires shares fast. The stock made an all-time high earlier this quarter for a reason.
The bear case
It's still a cyclical selling into a softening U.S. consumer, and tariffs are a live cost across the whole sector. An 8x multiple is cheap precisely because the market doubts peak-cycle earnings hold. If volumes roll over into 2027, today's EPS is the high-water mark and "cheap" gets cheaper.
My verdict
This is the one auto name I'll call a buy here. You're paying 8x for a company growing EPS, returning capital aggressively, and finally fixing the EV-loss problem. As Ruslan Averin, I'd accumulate $74–$80 and add harder on any dip toward the $70 shelf. With a Street target in the low-$90s, the upside-to-downside skew finally favors the buyer.
Bottom line: GM is the rare auto stock where a genuinely great quarter is still on sale — at 8x with a $6B buyback, I'm a buyer into the high-$70s.