General Motors Could Rise 17% By 2019

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a Large-Cap American multinational corporation the designs, builds and sells cars, tucks and parts for them.

The company's name is General Motors Company. It's trading ticker symbol is GM.  

This is my second report on GM. I last talked about this company about six weeks ago on April 13th.

The company operates through GM North America, GM International, and GM Financial segments. 

It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names. 

The company also sells cars, trucks, and crossovers to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. 

In addition, it offers connected safety, security, and mobility solutions, as well as information technology services. Further, the company provides automotive financing services. 

General Motors Company was founded in 1897 and is based in Detroit, Michigan.

I use three key data points gauge the value of any dividend equity or fund like General Motors Company: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

GM Price

GM's price was $38.10 per share at yesterday's market close. A year ago its price was $32.72 for a gain of $5.38 per share in the past year.  

Assuming GM's price will continue to trade in the range of $32.00 to $46.00 next year, its price could grow another $5.38 from $38.10 to $43.48 by late- May 2019. 

GM Dividends

GM's most recently declared quarterly dividend was $0.38 per share declared in April, and payable in June. That $0.38 Q dividend equates to an annual payout of $1.52  for 2018 and yields 3.98% at yesterday's $38.10 closing stock price.

Gains For GM?

The $5.38 estimated year over year price gain plus an anticipated dividend of  $1.52 makes a projected gross annual gain of $6.90 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $38.10 price buys 26 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts  $0.385 per share.

Taking that $0.385 brokerage cost out of the estimated $6.90 gross gain per share leaves a net gain of $6.52 X 26 shares 

$169.39

or a 17% potential net gain on a $880.60 investment.

Therefore, General Motors Company (whose ticker symbol is GM), now shows a possible 17% net gain including a 3.98% dividend yield. 

Twenty-five analysts cover this stock. 

Six say "buy."

Seven say GM will "outperform" the market

Ten analysts say "hold" the stock.

One says GM will "underperform" the market/.

One says "sell".

Y Charts rates GM "neutral" as for an overall "Y" rating. Also, Y Charts shows "Average" for a Value score of 7 out of ten points. And YCharts also ranks GM "average" with 6 out of 10 possible Fundamental points and shows a  Historic Valuation score as 4.09% overvalued, based on a $36.60 historic value multiple.

You could look at all those numbers like this: General Motors Company has made money, is making money, and could net a 17% net gain next year including  3.98% dividend yield. It could be more, it could be less.

Those forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if General Motors Company is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click on ...

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