General Motors (NYSE:GM) Stock Analysis: Price Target, Earnings, and Valuation Insights

• An RBC Capital analyst set a new price target of $94 for General Motors (NYSE:GM), indicating a potential 20.76% upside from its current stock price.
• Investors are keenly awaiting the upcoming earnings report, with projections indicating a significant 23% increase in earnings per share (EPS), yet the stock trades at a low forward price-to-earnings (P/E) ratio of 5.4x, suggesting it may be undervalued despite cash flow concerns.
• While General Motors recently outperformed major indices, it saw a monthly decline worse than its sector; however, strong demand for its internal combustion engine (ICE) vehicles, like the Chevrolet Trailblazer and Traverse, could boost future profit margins.

General Motors is a global automotive company that designs, manufactures, and sells cars, trucks, and automobile parts. On July 13, 2026, an analyst from RBC Capital adjusted their price target for General Motors to $94. At the time, the stock was priced at $77.84, meaning the new target suggests a potential upside of about 20.76%.

In its most recent session, General Motors closed at $77.85, a 1.57% increase that outperformed the S&P 500, Dow, and Nasdaq, as highlighted by Zacks Investment Research. This short-term gain contrasts with its performance over the past month, where the stock fell 5.19%. This decline was worse than the broader Auto-Tires-Trucks sector.

Investors are now focused on the company's upcoming earnings release on July 21, 2026. Projections show an earnings per share (EPS) of $3.11, which would be a nearly 23% increase from the prior year's quarter. In contrast, consensus estimates for net sales are $46.65 billion, a slight decrease of almost 1% from the year-ago period.

The stock is currently considered cheap, trading at a low forward price-to-earnings (P/E) ratio of 5.4x. The P/E ratio compares a company's share price to its earnings, and a low number can indicate a stock is undervalued. However, there is debate over the quality of its cash flow due to large accounting add-backs for its electric vehicle (EV) division.

Despite a 4.2% year-over-year sales decline in the second quarter, General Motors performed better than competitor Ford (NYSE: F), which saw a 10% drop. Demand for General Motors' internal combustion engine vehicles remains strong. Sales for its Chevrolet Trailblazer and Traverse models grew by 28% and 20% respectively, which could help improve future profit margins.