General Motors Stock Just Accelerated to New 10-Year Highs

• General Motors (GM) hit a new 10-year high in Monday morning trading.

• The automaker has a strong technical drive in this regard.

• The stock has a 100% “Buy” technical opinion from Barchart and the stock is up 32% over the past year.

• Fundamentals are forecasting a rebound in earnings next year and price targets rise to $100.

Valued at $68.58 billion, automotive giant General Motors (GM) has had a long and checkered history.

The company came to dominate American industry. However, affected by the financial crisis, General Motors declared bankruptcy. However, within a few months the company emerged from bankruptcy. The company is taking a step forward to embrace an electric future and gain a strong position in the fast-growing market. The company’s own modular battery platform, the Ultium Drive system, will help in the transition to an all-electric portfolio.

General Motors and its strategic partners produce, sell and service cars, trucks and parts under four major brands: Chevrolet, Buick, GMC and Cadillac.

I found today’s Chart of the Day using Barchart’s powerful selection features to select stocks with the highest technical Buy signals; current momentum superior in both strength and direction; and a “buy” signal from Trend Seeker. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. GM checks those boxes. Since Trend Seeker signaled a new “buy” on October 22, the stock has gained 9.09%.

Editor’s note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. Therefore, the indicator numbers shown below may not match what you see live on the Barchart.com website when you read this report. These technical indicators form Barchart’s opinion on a particular stock.

General Motors hit a 10-year high of $73.89 in morning trading on December 1.

• GM has a weighted alpha of +53.86.

• General Motors has a 100% “Buy” opinion according to Barchart.

• The stock gained 32.13% over the past year.

• GM has its Trend Seeker “Buy” signal intact.

• The stock recently traded at $73.81 with a 50-day moving average of $65.05.

• General Motors has hit 12 new highs and gained 6.31% in the past month.

• The Relative Strength Index (RSI) is at 69.97.

• There is a technical support level around $73.00.

• Market cap of $68.58 billion.

• Revenue is projected to decline 1.02% this year but increase again 0.30% next year.

• Earnings are estimated to decline 3.47% this year but rise again 11.19% next year.

I don’t buy stocks because everyone else is buying, but I do realize that if big companies and investors dump their stocks, it’s hard to make money swimming against the tide.

It seems that Wall Street and individual investors like this stock.

• Wall Street analysts tracked by Barchart have issued 14 “strong buys,” 2
  “Moderate Buy,” 10 “Hold,” and 3 “Sell” opinions on stocks with price targets between $41 and $100.

• Value Line rates the stock “highest” with 3-5 year price targets between $65 and $95.

• CFRA’s MarketScope Advisor rates it a “buy” with a price target of $78.

• Morningstar believes that even with the stock’s recent rise, it is fairly valued with a price target of $80.

• 2,868 investors following the Motley Fool stock believe it will outperform the market, while 1,069 think it will not.

• 248,150 investors monitor the stock on Searching Alpha, which rates the stock a “Strong Buy.”

Seeking Alpha sums it up: “GM displays strong valuation and profitability, backed by solid momentum and favorable analyst reviews, making it a compelling buy. However, some growth metrics lag, warranting continued watching.”

Today’s chart of the day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional Disclosure: The bar chart of the day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be purchase recommendations, as these stocks are extremely volatile and speculative. If you decide to add one of these stocks to your investment portfolio, we strongly recommend that you follow a default diversification and trailing stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com