On Friday, General Motors Co (NYSE:GM) shares declined by more than 3% amid mixed industry news. Market analysts expressed optimism earlier in the day that the current higher pricing could extend through 2022, thus boosting profit margins.
However, with the new covid variant news hitting the market hard, auto stocks fell along with the rest of the adversely affected market. The automaker missed revenue forecast for Q3 while beating on earnings last month.
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The stock is still up more than 48% this year despite pulling back nearly 7% in the recent trading sessions.
Is General Motors a growth stock?
From an investment perspective, GM shares trade at exciting trailing 12-month and forward P/E ratios of 8.31 and 9.17, respectively. Therefore, the stock could be a compelling option for value investors.
On the other hand, analysts expect its earnings per share to grow at an average annual rate of about 14.70% over the next five years, compared to an average annual decline of 6% in the previous five, making it an option for growth investors.
Technically, General Motors shares seem to be trading within an ascending channel formation in the intraday chart. However, the stock recently pulled back to find the trendline support, creating an opportunity for a rebound.
Therefore, investors could target potential rebound profits at about $63.90, while $56.46 and $52.56, are support levels.
In summary, although GM shares are up nearly 50% this year, it seems the stock has more room left to run following the recent pullback.
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