GM has dropped about 10% this week after narrowing both the top and bottom ends of its full-year profit outlook on Tuesday. CEO Mary Barra flagged "clear external headwinds," and the shares fell 6.8% that day, the worst single session since July 2025.
Losses extended Friday as autos and parts names weakened. Gentex, an electro-optic technology maker, and safety system supplier Autoliv traded lower after posting results before the open. As RBC's Tom Narayan wrote on Autoliv, "Companies reporting this earnings season have already called increasing cost headwinds in their respective guidance cuts," citing GM, Visteon, and Valeo.
Despite the selloff, bullish analysts leaned in. BNP Paribas, Evercore ISI, and RBC Capital Markets urged buying GM after Tuesday's report. BNP's James Picariello reaffirmed a buy equivalent, highlighting a "severely discounted valuation" and what he called unparalleled execution.
StoneX analyst Mickey Legg said expectations were high and characterized the pullback as a chance to buy, adding that what rattled investors was largely about timing rather than GM's underlying earnings strength.
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Bloomberg's roster shows zero sell calls on the shares right now, and that remained true even after Wells Fargo ceased coverage last month following an analyst departure. Separately, Tigress Financial's Ivan Feinseth said Ford's results next week "will depend less on whether it beats quarterly estimates and more on whether management maintains or raises its 2026 guidance."
At its most recent July report, GM topped profit expectations and subsequently raised guidance. Over the following days, the stock climbed to a record high before pulling back as oil stayed expensive, supply costs remained high, interest rates stayed elevated, and consumer sentiment weakened.
Feinseth argued, "The market has focused excessively on these near-term headwinds while overlooking the company's improving operating performance, margins, and cash generation." Year to date, GM shares are down 7.0% while the S&P 500 has gained 12%.
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