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General Motors (GM) Up More Than 6% Yesterday: Here's Why
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General Motors’ (GM - Free Report) shares shot up 6.39% yesterday to close the session at $63.46, after hitting an all-time high of $63.68. The rally came after the U.S. auto giant announced plans of ramping up production and deliveries despite the global chip crunch. The firm now expects 1H21 results to be significantly better than the previous forecast, thereby encouraging investors.
Thanks to ‘production line efficiencies’, General Motors intends to ramp up production of Chevrolet Silverado HD and GMC Sierra HD full-size pickups by 1,000 units a month, effective mid-July. The company already revved up shipments of Chevrolet Colorado and GMC Canyon mid-size trucks by around 30,000 units in May, which is set to continue through the first week of July. This was possible as General Motors managed to complete dynamic vehicle testing. Production and deliveries of a few other models will also get a boost from the firm’s efficiency initiatives and dynamic vehicle testing.
While production at a few plants in North America, Asia and South America will remain disrupted through June and July due to semiconductor shortage, the company is optimistic of first-half financial results, thanks to key engineering changes, prioritization of microchip usage and efforts to boost deliveries to dealers as well as customers amid strong demand.
In the last reported quarter, General Motors came up with adjusted earnings of $2.25 per share, breezing past the Zacks Consensus Estimate of $1.02 and significantly higher than the year-ago figure of 62 cents amid cost-containment efforts, and robust demand for SUVs as well as pickups. The firm is now quite optimistic of full-year 2021 results.
As it is, General Motors — which shares space with other auto biggies including Ford (F - Free Report) , Toyota (TM - Free Report) and Volkswagen (VWAGY - Free Report) — is on a spree to revolutionize the e-mobility space, which is set to boost its long-term prospects. The company has adopted an “all-in” electrification strategy — whereby it will have a competitive advantage in batteries, software, vehicle integration, manufacturing and customer experience — in order to make EVs the key to driving profitability. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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General Motors (GM) Up More Than 6% Yesterday: Here's Why
General Motors’ (GM - Free Report) shares shot up 6.39% yesterday to close the session at $63.46, after hitting an all-time high of $63.68. The rally came after the U.S. auto giant announced plans of ramping up production and deliveries despite the global chip crunch. The firm now expects 1H21 results to be significantly better than the previous forecast, thereby encouraging investors.
Thanks to ‘production line efficiencies’, General Motors intends to ramp up production of Chevrolet Silverado HD and GMC Sierra HD full-size pickups by 1,000 units a month, effective mid-July. The company already revved up shipments of Chevrolet Colorado and GMC Canyon mid-size trucks by around 30,000 units in May, which is set to continue through the first week of July. This was possible as General Motors managed to complete dynamic vehicle testing. Production and deliveries of a few other models will also get a boost from the firm’s efficiency initiatives and dynamic vehicle testing.
While production at a few plants in North America, Asia and South America will remain disrupted through June and July due to semiconductor shortage, the company is optimistic of first-half financial results, thanks to key engineering changes, prioritization of microchip usage and efforts to boost deliveries to dealers as well as customers amid strong demand.
In the last reported quarter, General Motors came up with adjusted earnings of $2.25 per share, breezing past the Zacks Consensus Estimate of $1.02 and significantly higher than the year-ago figure of 62 cents amid cost-containment efforts, and robust demand for SUVs as well as pickups. The firm is now quite optimistic of full-year 2021 results.
As it is, General Motors — which shares space with other auto biggies including Ford (F - Free Report) , Toyota (TM - Free Report) and Volkswagen (VWAGY - Free Report) — is on a spree to revolutionize the e-mobility space, which is set to boost its long-term prospects. The company has adopted an “all-in” electrification strategy — whereby it will have a competitive advantage in batteries, software, vehicle integration, manufacturing and customer experience — in order to make EVs the key to driving profitability. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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