General Motors Company GM has delivered an impressive performance over the past year. Its shares have gained 43.3%, outperforming the 1.3% rise of the Automotive - Domestic industry and the 17.6% rise of the Zacks S&P 500 composite.
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GM’s revenues are anticipated to increase 0.35% and 2.14% year over year in 2026 and 2027, respectively. Earnings are estimated to rise 26.4% in 2026 and 10.14% in 2027. The company has an estimated long-term (three- to five-year) earnings per share (EPS) growth rate of 13.3%.
Factors That Augur Well for GM
General Motors’ new user interface for its 2027 Chevrolet Silverado and GMC Sierra pickup trucks is expected to enhance the overall driving experience through intuitive layouts, advanced 3D visualization and personalized controls. The integration of trailering, off-road and Super Cruise features, along with improved Apple CarPlay and Android Auto functionality, could further strengthen the appeal of GM’s high-volume pickup lineup. The company’s focus on software-driven capabilities and seamless vehicle-mobile integration also highlights its efforts to differentiate its trucks through advanced technology and connected features.
GM's long history of safety innovation highlights its sustained focus on developing technologies aimed at improving vehicle safety and reducing crash-related risks. From the electric self-starter, crash testing and energy-absorbing steering columns to airbags, OnStar, Rear Seat Reminder and Buckle to Drive, GM has introduced several safety features that have influenced the broader automotive industry. The company’s efforts to make key active safety technologies standard across most of its vehicles further underscore its commitment to enhancing safety while strengthening the value proposition of its lineup.
The company’s $250,000 grant to the College for Creative Studies and its support for Detroit’s arts community highlight its commitment to nurturing future design talent and strengthening its ties with the city. The Art + Cars exhibit and long-term loan of artwork to the Detroit Institute of Arts further reinforce GM’s focus on design, creativity and community engagement, which could support its brand image and help foster the next generation of automotive designers.
General Motors’ launch of the Stars, Stripes and Skilled Trades initiative highlights its efforts to strengthen the skilled workforce while supporting veterans and military families. By providing grants ranging from $100,000 to $500,000 to workforce nonprofits and expanding pathways into manufacturing and skilled-trade careers, the program could help GM build a stronger talent pipeline while reinforcing its presence in communities near its facilities.
Moreover, in the second quarter of 2026, GM delivered solid operating performance, with revenues rising 1.9% year over year to $48.0 billion and adjusted EBIT increasing 29.8% to $3.9 billion. Adjusted EPS grew 41.3% to $3.57, while adjusted automotive free cash flow surged 78% to $5.0 billion. The improved performance supported GM’s decision to raise its full-year 2026 adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion, highlighting stronger operating momentum.
GM: Key Risks to Watch
General Motors is facing significant pressure from macroeconomic volatility, which is driving up expenses and weighing on its bottom line. In the second quarter of 2026, total costs and expenses rose to $46.6 billion from $45.0 billion a year ago, while net income declined 31.1% to $1.3 billion. The elevated cost base could continue to pressure GM’s profitability and limit margin expansion going forward.
General Motors’s Zacks Rank & Stocks to Consider
GM currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Honda Motor Co. HMC and Fox Factory Holdings FOXF.
HMC currently sports a Zacks Rank #1. The company has an expected earnings growth rate of more than 100% and 62.6% for 2026 and 2027, respectively.
FOXF currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 44.3% and 21.3% for 2026 and 2027, respectively.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 53.8%.
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General Motors Company (GM): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).