Long Position on GM @ $57.00 on 10/25/2021 (Momentum)

General Motors Company (GM) designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.

The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.

The company also sells trucks, crossovers, and cars 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 safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation, as well as connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity.

Further, the company provides automotive financing services; and operates an online store.

General Motors reported 2nd Quarter June 2021 earnings of $1.97 per share on revenue of $34.2 billion. The consensus earnings estimate was $1.89 per share on revenue of $29.1 billion. Revenue grew 103.6% on a year-over-year basis.

The company said it expects 2021 earnings of $5.40 to $6.40 per share. The company's previous guidance was earnings of $4.50 to $5.25 per share and the current consensus earnings estimate is $6.79 per share for the year ending December 31, 2021.

Please note, this stock reports earnings on Wednesday, October 27.

This stock should see a strong earnings report as demand for cars remains high in anticipation for the 2022 car production cycle.

Entry Point: $57.00

Trading Range: $33.55 - $64.30

Stop Loss: $54.25

Target Price: $62.70

Updates

12/7/2021 1:05:24 PM

Closed at $62.

Position closed on 12/7/2021 at price of $62.00 with a 8.77% gain in 43 days.

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