Beyond The Price Tag: Why General Motors Might Not Be A Bargain


  • GM is losing market share in a stagnant industry.
  • Its business fundamentals are affected by economic cycles, with limited competitive advantages.
  • The financial segment adds complexity and leverage, so caution is advised for investment.
  • Macro trends and peer stock performance suggest caution as well.

GM Canada Technical Centre campus in Markham, Ontario, Canada.


Despite the optically cheap valuation, I believe the timing for investment in GM (NYSE:GM) is not favorable. While the business is structurally losing market share in a stagnating industry, recent macro signals and peer stock performance suggest emerging weakness.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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