General Motors Builds 8 Brands Worldwide
The consumer cyclicalssector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.
Today I'm reviewing an automobile manufacturer. It's a large-cap stock with market capital over $10 billion. Its name is General Motors Company. It's trading ticker symbol is GM.
General Motors Company is an American multinational corporation. It designs, builds and sells cars, trucks and automobile parts.The company also provides automotive financing services through General Motors Financial Company, Inc.
General Motors was rescued in 2010 by American taxpayers but was assembled over a hundred years by acquisitions and mergers of many companies. It is headquartered in Detroit, MI and serves five continents with 8 distinct brand names: Chevrolet, Buick, Cadillac, Holden, Baojun; Wuling, and Jiefang.
I use three key data points gauge the value of any dividend equity or fund like General Motors:
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will finally unlock an equity or fund in which to invest.
However, it's the first three primary keys that best tell whether a company has made, is making, and will make money.
GM Price
General Motor's price was $38.83 per share at yesterday's market close. A year ago its price was $33.39 for a gain of $5.44 per share.
Assuming General Motor's price will trade between the range of $20 to $46 next year, its price could grow another $5.44 from $38.83 to $44.27 by April, 2019.
GM Dividends
General Motor's most recent quarterly dividend was $0.38 declared in in February, and paid March 23. Four payouts of $0.38 peg the annual amount at $1.52 for a yield of 3.9% at yesterday's $38.83 share price.
Gains For GM?
Adding the $1.52 estimated annual dividend to the $5.44 estimated year over year price gain makes a $6.96 projected gross annual gain, which will be reduced by the cost to trade these shares.
$1,000.00 invested today at the $38.83 price buys 26 shares.
A $10 broker fee paid half at purchase and half at sale costs about $0.38 per share
Subtracting that $0.38 brokerage cost from the estimated $6.96 gross gain leaves a net gain of $6.58 X 26 shares
= $171.08
or a 17% net gain on a $1,009.58 investment.
Therefore, General Motors Company (whose ticker symbol is GM), now shows a possible 17% net gain including a 3.9% dividend yield.
24 analysts cover this stock. Of those 24: 6 say buy; 7 say outperform, 9 say hold, 1 says underperform, and 1 says sell.
The current stock price has fallen 15% from a peak of $45.76 for the past eight years reached October 26, 1917 to its recent $39.83.
The 24 analysts median target price estimate is at $48.77 which is $4.50 above my year over year calculation of $44.27. A year from now we'll look back to see who's closest.
Those forward looking numbers were conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if General Motors Company is worth your time and money.
Impressive.