General Motors Co. stock is set to record its worst week in more than 20 months, having fallen 8% through Thursday's close. The drop puts the carmaker on pace for its largest weekly decline since January 2025, yet bullish Wall Street analysts are doubling down and telling investors to buy the dip.
The selloff followed Tuesday's earnings report, in which GM narrowed the top and bottom ends of its profit guidance range. Chief Executive Officer Mary Barra warned that the company faces "clear external headwinds," sending the stock down 6.8%, its worst session since July 2025. Stone X analyst Mickey Legg, who has a buy rating on GM, said the bar was high and that the market's concerns are about timing rather than earnings power. None of the analysts tracked by Bloomberg recommend selling the stock, although Wells Fargo dropped coverage of the company last month amid an analyst departure.
Analysts at BNP Paribas, Evercore ISI and RBC Capital Markets also urged investors to buy after the earnings report. BNP's James Picariello reiterated his buy-equivalent rating, citing GM's "severely discounted valuation" and unparalleled execution. Shares remain down 5.1% year to date, while the S&P 500 has climbed 12%.
The stock has retreated since GM's July earnings beat and raised outlook, which had pushed shares to a record high. Investors have been weighing lofty oil prices, high costs, elevated interest rates and weak consumer sentiment. Ivan Feinseth, chief investment officer at Tigress Financial Partners, argued the market has focused excessively on these near-term headwinds while overlooking the company's improving operating performance, margins and cash generation.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing