GM Earnings Looms Before Tuesday’s Bell With Stock Price Closing In On $50 Level

Investors and market analysts are turning their attention toward General Motors (NYSE: GM) as the automotive giant is slated to release its quarterly earnings before the opening bell tomorrow.

For the upcoming earnings announcement, market analysts have set the bar with an expectation of $2.54 earnings per share (EPS) for the quarter. This forecast comes on the back of GM's previous quarter's performance, which surpassed expectations with an earnings report of $3.06 per share.

The automotive company has also established its fiscal year 2024 guidance, projecting an EPS range of $9.50 to $10.50, providing a transparent financial trajectory to investors.

News coming in before earnings indicates GM looking to shore up lithium supplies, with a JV delivering $625million of cash and credit letters to Lithium Americas Corp (LAC). This is a new investment agreement to establish a joint venture for the purpose of funding, developing, constructing and operating Thacker Pass in Humboldt County, Nevada.

GM's stock price this year has outperformed the broader market, with gains of 36.42% on a YTD basis bringing the 12 month gain to 68%. The $50 resistance level has proved difficult for the bulls to crack however, with the stock most recently being rejected in July. A 20% retracement followed, with the price dipping briefly below $40, before the latest push to the upside leaves shares entering this critical period back in the low $49 range.

Looking into the view from the street, and analysts have solid coverage on GM, with the array of ratings issued by various equities research analysts offering a very split view of the company's stock value.

You will usually find a split of opinions between the bull and bear cases, and in the case of GM this is no different. The high price target on GM's stock is sitting up at a lofty $88, whereas the low forecast of $33 remains significantly below current price action. The consensus mark in the mid $54 range reflects a potential upside of around 10% for the firm.

Early last week, analysts at Barclays upgraded their price target on GM to $64, from a previous mark of $60. The firm remain Overweight leading into earnings.

General Motors holds a market capitalisation of $55.27 billion and maintains a dividend of around 1%.

All eyes will be on General Motors as it prepares to unveil its financial performance, with investors keen to examine the earnings data within the broader context of the company's share movements and market valuations. As GM navigates the complex terrain of the global automotive market, its financial disclosures remain a critical barometer for stakeholders and analysts alike.