General Motors Is A Buy Ahead Of Q2 Earnings (Rating Upgrade)

General Motors is upgraded to a buy ahead of Q2 earnings, with valuation still highly depressed despite a 30% stock rally since last August. Q1 showed EBIT margin expansion to 9.7% and a 33% EPS growth rate, with raised 2026 guidance implying 14% EBIT and 18% EPS annual growth at the midpoint.

Vehicle sales declines are slowing, U.S. truck and EV market share is rising, and new growth opportunities are emerging in defense and AI data center energy storage. Near-term risks include commodity price volatility and supplier strikes, but GM trades at a nearly 75% forward PEG discount, offering attractive risk/reward.

It has been quite a while since I have provided an update for General Motors Company (GM). As shown above, my downgrade to a sell rating last August hasn't aged particularly well.