GM Stock Dividend: General Motors Company set for fourth day of gains as value outshines NIO, others
- NYSE: GM is on course for further gains, extending its steady rise.
- General Motors Company's low valuation stands out after NIO's disappointing earnings.
- The veteran automaker's venture into EVs could provide it additional upside.
Will this tortoise surpass the hare? After being in business for more than 112 years, General Motors Company (NYSE: GM) is catching up with the latest technologies. Will its value and eventual dividend meet that of shiny rivals?
See latest in the electric vehicle sector
The fresh interest in the company run by Mary Barra comes after Nio Inc (NYSE: NIO) reported disappointing earnings results. The Shanghai-based electric vehicle maker – once dubbed "China's Tesla" – failed to turn a profit, serving as a reminder that financials still matter.
Stay up to speed with hot stocks' news!
Moreover, Elon Musk's Tesla, that rake in more money than it spends, has a forward P/E close to 200 while GM's is hardly in double digits. Legendary investor Warren Buffet has more funds in BYD than in GM, but even the Oracle from Omaha may be missing something.
Investors are naturally attracted to lean and mean companies that focus solely on technologies of the future and dismiss the old giants. However, General Motors is venturing into electric vehicles, most recently via Brightdrop, a subsidiary. The spin-off focuses on commercial delivery and logistics solutions such as EV600 that will go to FedEx later in the year. Moreover, it is backed up with a cloud-based software platform ready for updating vehicles.
GM Stock Forecast
Are investors overlooking GM's jump into new technologies? Trading in recent days – even before NIO's earnings – has shown that General Motors is gaining traction. Shares are set to rise by 1.55% on Wednesday, and that would be the fourth consecutive day of gains.
As the color on the chart above signals, NYSE: GM is still down in February. Nevertheless, it is within striking distance of the 52-week high of $57.05, which serves as the next target. While that may dampen the dividend yield, the Michigan-based veteran may still find buyers even after exceeding that level.
The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
