General Motors Co (NYSE:GM) Will Boost Business as China Slows

[The Motley Fool] General Motors Co (NYSE:GM)(TREND ANALYSIS) still sells a lot of cars and trucks in the U.S. But it sells even more in China, which is now the world’s largest new-vehicle market. And GM’s Chinese operation is huge — it’s second only to Volkswagen in terms of sales.

In recent months, there have been lots of signs that China’s economic growth is slowing. More recently, a big stock market decline has made Chinese consumers nervous — and that has put a damper on new-car sales.

Add in increased competitive pressure from up-and-coming local Chinese automakers, and the Chinese government’s moves this week to devalue the yuan, and the picture starts to look grim.

How is General Motors planning to deal with all of this?

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General Motors Co (NYSE:GM) stock is currently trading 20.83% below its 52-week-high, 7.11% above its 52-week-low. The 1-year stock price history is in the range of $28.82 – $38.99. General Motors Co (GM) has a price to earnings ratio of 11.4 versus Consumer Goods sector average of 14.81. GM stock price has underperformed the S&P 500 by 11.4%. The Auto-Cars & Light Trucks company is currently valued at $48.9 billion and its share price closed the last trading session at $30.87. The stock has a 50-day moving average of $31.91 and a 200-day moving average of $35.22.

General Motors Co (GM) current short interest stands at 45.07 million shares. It has increased by 7% from the same period of last month. Around 4% of the company’s shares, which are float, are short sold. With a 10-days average volume of 16.12 million shares, the number of days required to cover the short positions stand at 2.8 days.

GM reported last quarter earnings on July 23. The Auto-Cars & Light Trucks company announced earnings per share of $1.29 against a consensus Street estimate of $1.08, beating the average estimate by $0.21. This corresponds to an increase of $0.77 compared to the same quarter of the previous fiscal year.

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There are currently seventeen analysts that cover General Motors Co stock. Of those seventeen, nine have a Buy rating, eight have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $40.53.

A recent analyst activity consisted of Susquehanna reiterating their Neutral stance on August 5. Susquehanna increased their price target on GM from $35 to $36. This corresponds to a 16.62% upside from the last closing price. On the date of report, the stock closed at $31.6.

Credit Suisse upgraded their Underperform rating to Neutral on July 24. On the date of report, the stock closed at $31.06.

Company profile

General Motors Co. manufactures and markets new cars and trucks. The Company offers features for special needs drivers, OnStar vehicle protection, service, parts, accessories, maintenance, XM satellite radio, features for commercial owners, and more. General Motors offers its vehicles and services worldwide.

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