Video stock deep dive: GM
$GM beat on revenue and EPS this morning, dropped a $20B buyback and the stock still got hit over 5%.
Q3: revenue $50.0B (up 2.9%). Adj EPS $3.70 vs ~$3.63 expected. EBIT-adjusted $4.1B (up 22%). Free cash flow guide raised to $11.5B to $12.5B.
Why it's down: they narrowed the 2026 profit guide instead of raising it. EPS midpoint $13.25 vs ~$13.42 the Street wanted. Commodity costs near $2B incl memory chips.
I think GM is a buy on this dip. You're paying ~6x earnings for a company that just authorized buying back ~30% of its market cap. I'd start here and add near $70. A break below $70 plus a cut to the cash flow guide would flip me to hold.
Not financial advice. Are you buying GM at 6x or waiting for $70?
The chart and the levels I'm watching: buy zone here, add near $70, and a break below $70 flips me to hold. Where would you start a position?
Sources: GM Q3 2026 press release and financial highlights GM IR · Same release filed with the SEC 8 K exhibit 99.1 · GM Q3 U.S. sales release Oct 1 2026 · CNBC Michael Wayland, Oct 20 2026 : LSEG est: EPS $3.63, revenue $48.7B; commodity inflation ~$2B incl logistics and DRA · Yahoo Finance Pras Subramanian, Oct 20 2026 : guide midpoints unchanged; FCF raise; commodity ~$2B; EV sales down ~62% · Investing.com Oct 20 2026 : EPS guide midpoint $13.25 vs $13.42 consensus; GMNA 8.7% margin; GMI $28M; China $32M
Not financial advice. For informational and educational purposes only.
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