GM’s vindication from Wall Street has arrived as it outperforms peers in 2024 | Wilnesh News

Detroit- General Motors It has proven to be a standout among automakers this year as it continues to consistently beat Wall Street’s profit expectations and its rivals.

Shares of the Detroit automaker were up 54.7% before trading opened on Monday, outperforming traditional rivals. Tesla and U.S. electric vehicle startups sobriety group and Rivian Cars.

“You may still not believe it, but it’s true, GM continues to truck,” BofA Securities analyst John Murphy wrote in an investment note last month after the automaker beat Wall Street expectations for third-quarter results. The reporter wrote in the report.

GM has achieved this goal with the help of stock buybacks since November, an initiative worth $12.4 billion that the company said will continue for the foreseeable future. But it also proved itself to be better operationally than its cross-town rivals Ford Motor Company and Chrysler parent company starand other industry peers.

CEO and Chairman Mary Barra has been preaching about this differentiation for years, but it has largely fallen on deaf ears. In large part because of its history and the cyclical nature of the auto industry, GM’s stock trades in lockstep with Ford’s.

But not this year. Ford’s shares were down 10% as of Friday’s close. Others, including ferrariIt has been one of Wall Street’s best-performing auto companies, but it also lags behind General Motors.

Although Tesla shares surged more than 30% in the past week after President-elect Donald Trump won the U.S. presidential election, the electric car maker still trails General Motors. Tesla CEO Musk strongly supports Trump.

• General Motors (GM): 54.7%
• Ferrari (racing): 34.3%
• Tesla (TSLA): 29.3%
• Hyundai Motor* (HYMTF): 27.9%
• BYD Company* (willingness): 27.2%
• Toyota Motor (TM): down 6.2%
• Ford (F): down 10%
• honda cars (HMC): Down 13.3%
• Fox* (VWAGY): down 28.2%
• Nissan*(NSANY): down 36.1%
• rickshaw (LI): down 36.8%
• Stellantis (STLA): down 42.5%
• NIO Company (NIO): down 43.9%
• Lucid (LCID): down 47.5%
• Rivian (RIVN): Down 54.9%
  *OTC stocks

Unlike many rivals, GM did not cut its 2024 guidance or fall short of Wall Street’s quarterly profit expectations. Instead, it actually raised key financial targets despite continued market challenges in the U.S. and its China operations losing hundreds of millions of dollars to increased competition.

While GM says it’s cutting costs, it won’t have to be as aggressive as other automakers this year. Nissan, Volkswagen and Stellantis are in the process of large-scale business restructuring, including layoffs, production cuts and other cost-saving measures.

Under Barra, who began leading the automaker in January 2014, GM’s stock price has been lackluster for investors for much of her tenure. The stock has closed at an average price of $38 a share during her tenure, down from $40.02 a share before she became chief executive, according to FactSet data.

As of Friday’s close, Barra’s stock price had risen 38.9% during his tenure. By comparison, the S&P 500 has gained nearly 300% during that period. On January 5, 2022, Barra introduced GM’s electric vehicle ambitions and growth plans, causing GM’s stock price to hit an all-time high under Barra’s leadership, reaching $67.21.

Whether GM can continue its strong momentum next year is unclear, but the automaker said it expects results in 2025 to be in line with this year, including hinting at a weaker fourth quarter.

Barra reiterated her stance on Oct. 22 when discussing quarterly earnings that GM will continue to “enhance our competitive strength and deliver results that differentiate us from others in our industry.”

“We will be disciplined, resilient and adapt where we can to continue to drive growth and profitability,” Barra said. “In the weeks and months ahead, you will know better than ever “We can clearly see how we intend to leverage the favorable factors within our control to achieve strong results in 2025 in a similar range to 2024.”

GM stock has an average weight of $59.85 per share, according to Wall Street average valuations compiled by FactSet.