General Motors’ Stock: Is GM Outperforming the Consumer Discretionary Sector?

General Motors’ Stock: Is GM Outperforming the Consumer Discretionary Sector?

Kritika Sarmah

Tue, September 8, 2026 at 2:59 PM GMT+3 3 min read

• GM -2.37%
• XLY -1.34%

General Motors Company (GM) is a global automaker that designs, manufactures, and sells trucks, SUVs, crossovers, cars, and automotive parts. Its vehicle portfolio spans the Chevrolet, GMC, Cadillac, and Buick brands, while GM Financial provides automotive financing.

With a market cap of $77 billion, GM falls under the "large-cap stocks," category. GM's market leadership stems from its scale, leading truck and SUV franchises, and disciplined execution.

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The automotive stock has fallen 4.5% from its 52-week high of $91.85, which it hit on July 29. Shares of General Motors are up 5.5% over the past three months, compared to the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 2% drop during the same time frame.

The longer-term picture is even more compelling. GM has gained 7.9% year to date and has surged 50.9% over the past 52 weeks, while the ETF has declined 3.8% and 2.3%, respectively.

Technically, the stock has spent most of the past year above its 200-day moving average and has remained above its 50-day moving average since late July, suggesting that the broader uptrend remains intact.

GM's stronger stock performance over the past year reflects better-than-expected earnings, improving margins, and confidence in its turnaround strategy. Its truck and SUV business remains a key profit engine, while software and subscription revenue offer additional growth opportunities.

The company's second-quarter results reinforced that momentum, with revenue reaching $48.03 billion, up 1.9% year over year and comfortably ahead of the $47.01 billion analyst consensus. Adjusted EPS beat Wall Street estimates by 8.5% to $3.57, marking GM's fourth consecutive quarterly beat. Management raised its full-year 2026 adjusted EBIT guidance for the second time this year, now expecting $14 billion to $16 billion, while lifting adjusted EPS guidance to $12 to $14, further reinforcing confidence in GM's earnings outlook.

GM's efforts to strengthen its operations are also drawing attention. On Aug. 11, GM shares popped 1.6% after the company secured an up to $4.5 billion parts-purchasing facility with Procura Auto Parts to help prevent future supply chain disruptions. Backed by financing from JPMorgan Chase (JPM) and Banco Santander (SAN), the arrangement allows GM to secure critical inventory while keeping the associated inventory costs off its books until the parts are used in production. The deal follows years of industry-wide supply chain challenges and efforts to reduce sourcing risks.

The performance gap between GM and its industry rival, Ford Motor Company (F), looks different depending on the time frame. Ford stock has gained 11.4% year to date, outpacing GM. However, its 25.2% return over the past year trails GM's stronger performance.

Wall Street analysts are fairly optimistic about GM's prospects. Of the 28 analysts covering the stock, the consensus rating is "Moderate Buy," with a mean price target of $99.64, indicating a potential upside of 13.5% from its current level.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com