GM Confirms It Will Make An All-Electric Truck; Should You Invest?

General Motors Company (NYSE:GM) shares jumped 3.5% on Tuesday, 20th July 2021 following the announcement made by the US automobile manufacturer that the company would produce a new electric pickup truck in the near future. The new EV will be a full-sized electric vehicle under the GMC nameplate and will be targeted at mainstream consumers.

GM is also launching an electric version of the Hummer and another model to compete with Chevy’s Silverados. At least 30 new electric vehicles will be launched worldwide by 2025, according to the company. With Tesla Inc. (NASDAQ:TSLA)’s success, many companies are entering the electric vehicles market. GM expects to cease production of vehicles powered by internal combustion engines by 2035.

What are the chances that GM stock will rise in Q3 2021?

With a price-to-earnings ratio of 9.07, GM shares represent a compelling investment for value investors. The forward P/E relation of 7.73 also indicates that GM is badly undervalued. The consensus forecast for GM earnings per share is for it to decline by 5.30% this year, then grow at an average annual rate of about 13.51% over the next five years. This makes General Motors a great investment prospect for growth investors.

GM Confirms It Will Make An All-Electric Truck; Should You Invest?

An overview of the stock price forecast for General Motors for Q3 2021

According to the 14-day Relative Strength Index, the stock of General Motors is currently rising from its oversold condition. This is the first time the GM share price has fallen below the 100-day moving average since July. However, a rebound on Tuesday, 20th July 2021, may therefore be a critical catalyst for growth to continue. Investors can therefore set their sights on profits at approximately $59.01 or higher at $63.86. Support levels worth paying attention to are $52.89 and $49.30.

The best places to buy GM stock

For users to easily and conveniently invest, a broker with a proven track record of reliability is required. There are a number of highly rated, recognized, and safe brokers available worldwide. A reliable broker who has access to GM stocks listed on the New York Stock Exchange (NYSE) is required to buy GM stock. In the event you want to invest in the stock of General Motors in the long run, and you plan to hold the stock in a brokerage account, a discount broker is a good choice since the commission is modest, but you won’t get the extra services that full-service brokers deliver.

Idle accounts at some online brokers are charged a monthly fee while others offer services for free. Making sure you pick the right broker is just as critical as where you buy GM stock.

  • Decide on a broker

The right broker for your stock buying needs will make the process much simpler. Some brokers are better suited to fill your needs than others, depending on whether you want a bank account and a trading account with your broker.

  • Visit the trading platform

You can practice trading with virtual or demo accounts provided by most online brokers without risking any money. If you want to find out what broker offers the best platform and services for your needs, you might want to open several of these accounts.

  • Set up an account (FUND)

You need to fund your account once you have selected a broker and chosen a trading platform. Even though some brokers allow you to open an account without funding, each of them has its own requirements, methods of funding, and minimums. Verify your ability to meet the requirements with your preferred broker.

  • Get started with GM stock

You now need to determine the price you want to pay for the GM stock. In order to determine the best entry-level for your stock, you will normally need to observe the GM stock price over a number of trading sessions. You are entitled to place a bid for the amount of stock that you wish to purchase once you know your price level.

Brokers offering the best online services

Etoro, Over 13 million users worldwide rely on this service. Here is the registration page

Robinhood, Investors who want a simple and easy-to-use layout without the bells and whistles other brokers provide should consider Robinhood. Robinhood has an intuitive and streamlined platform that even an absolute beginner can easily master, despite its limited trading options and account types. Other brokers offer technical analysis tools, an option that is nearly universal across the board. Advanced traders, on the other hand, may find Robinhood lacking this feature. Here is the registration Page

WEBULL, Webull offers active traders a range of technical indicators, economic calendars, research agency ratings, and margin trading and short-selling capabilities. Despite its advanced nature, Webull’s trading platform is also beneficial to beginning traders.  Here is the registration Page

Is GM a good investment for you?

GM might be a great stock for you to invest in if you are a keen observer of stock market movements and understand economic cycles. For investors who want a long-term investment that will yield large returns, GM stock might seem risky right now after global economic conditions changed dramatically following the COVID-19 pandemic, triggering an economic downturn and a surge in U.S. unemployment.

There are some cyclical stocks that require some market knowledge, expertise, and learning, so they’re not for everyone. GM restored its stock dividends recently to offer some income to investors, which is a positive move. You can also use put options to partially or fully hedge your GM stock holdings if you intend to buy the stock for investment purposes, which might make sense today in an uncertain market.

Conclusion

The new all-electric pickup truck that General Motors plans to introduce targets a specific segment of the EV market. It brings the company’s EV pipeline to a new level and helps it reach its 2025 target of launching 30 new EV models. Value investors may find the stock attractive given its current valuation multiples, and Tuesday’s rebound could spur additional gains.

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