General Motors (GM) shares rose 46% so far in 2024, heading toward one of the best years in its history as the company met expectations in its electric vehicle segment.
Mary Barra, GM’s CEO, told Yahoo Finance that they experienced many changes. “We are a transforming industry, and GM is ensuring that we are prepared and proactive for the changes ahead.”
“This year, the company raised its profit forecast every time it reported its financial results in 2024, primarily due to the adoption of crossover cars like the Chevy Trax and the Cadillac Lyriq EV, as well as cost cuts.
Strong finish
In the third quarter of the year, its revenues of $48.76 billion and adjusted earnings of $2.96 per share surpassed analysts’ estimates of $44.69 billion and $2.43, respectively.
As a result, it achieved a strong cash position, allowing it to repurchase shares worth $2.4 billion since January, sending a clear signal to the market of long-term potential.
In this context, Dan Ives, of Wedbush Securities, stated that “GM led by example this year” and that its shares could “reach triple digits” if the corporation delivers on its promise to continue growing and leading the electric vehicle sector, which is currently dominated by Chinese brands.
Additionally, GM’s shares trade at a forward price-to-earnings ratio of 4.9, compared to 23 for the S&P 500, 126 for Tesla, and 5.9 for Ford, its main competitor.
