General Motors Co. shares recorded their worst week in nearly three years, leading a wider selloff in automotive stocks on Friday. Yet, bullish Wall Street analysts are doubling down on the carmaker.
GM’s stock fell 9.6% this week, its largest such drop since November 2023, and analysts are saying investors should buy the dip.
On Tuesday, the company narrowed the top- and bottom-ends of this year’s profit guidance range, and its Chief Executive Officer Mary Barra warned that GM faces “clear external headwinds,” sending the stock down 6.8% in the worst session since July 2025.
“The bar was high,” said StoneX analyst Mickey Legg. “It’s a buying opportunity. Most of what spooked the market is timing rather than earnings power.”
Shares of GM added to losses on Friday, declining side-by-side with weakness in makers of car parts. Electro-optic technology producer Gentex Corp. and safety system firm Autoliv Inc. both slumped after reporting results premarket.
“Companies reporting this earnings season have already called increasing cost headwinds in their respective guidance cuts,” RBC analyst Tom Narayan wrote in a Friday note on Autoliv. He cited GM, fellow supplier Visteon Corp., and Europe’s Valeo SE as examples.
Still, RBC’s Narayan and StoneX’s Legg, both have buy or equivalent ratings on GM. In fact, none of the analysts tracked by Bloomberg currently recommend selling the stock, after Wells Fargo dropped coverage of the company amid an analyst departure last month. Meanwhile, GM shares are down 6.6% year-to-date as the S&P 500 climbed 11%.
Analysts at BNP Paribas, Evercore ISI, and RBC Capital Markets say to buy the dip in GM after Tuesday’s earnings. BNP’s James Picariello reiterated his buy-equivalent rating, citing the company’s “severely discounted valuation” and unparalleled execution.
Ivan Feinseth, chief investment officer at Tigress Financial Partners, said that when GM-peer Ford Motor Co. reports earnings next week, the stock reaction “will depend less on whether it beats quarterly estimates and more on whether management maintains or raises its 2026 guidance.”
When GM last reported earnings in July, quarterly profit beat and management hiked its outlook. Shares rallied over the next few days to touch a record high. But the stock has retreated since amid lofty oil prices, high supply costs, elevated interest rates, and weak consumer sentiment.
“The market has focused excessively on these near-term headwinds while overlooking the company’s improving operating performance, margins, and cash generation.” said Feinseth.
Written by: Jordan Fitzgerald and Paul Roman @Bloomberg
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