General Motors (GM) is having a stellar year in the stock market. As of the last trading day, its shares have climbed over 55%, reaching an all-time high of more than $80 per share. This is the best performance since the company's comeback after bankruptcy in 2009.

Several things are fueling this growth. GM's CEO, Mary Barra, has long argued that the company's stock is undervalued, given its steady earnings. She pointed out that GM's success comes from making great cars, using innovative tech, and providing excellent customer service, along with strong financial results.

Despite the stock's rise, Barra has been selling some of her shares. She's exercised options or sold about 1. 8 million shares this year, worth over $73 million. But she still owns more than 433, 500 shares, valued at over $35 million.

GM's stock performance is looking good compared to other automakers. Tesla's shares are up 17% this year, Ford's are up 34%, and Stellantis is down 15%. Other companies like Honda and Toyota have seen smaller gains.

GM's recent earnings report was a big deal. It exceeded Wall Street's expectations and led to higher price targets from analysts. UBS, for example, increased its target to $97 per share, calling GM its top pick for 2026. Morgan Stanley also upgraded GM, setting a $90 target.

Analysts are optimistic about GM's cash flow, earnings, and shareholder returns. They also expect GM to benefit from changes in regulations under the Trump administration, despite ongoing tariffs.

GM's stock has been on a winning streak since June, with the biggest weekly gain of 19. 3% after the third-quarter earnings report. The company also raised its annual guidance, predicting even better earnings next year.

External factors are also giving GM a boost. The Trump administration has relaxed fuel economy and emissions standards, removed penalties, and renegotiated trade deals. Meanwhile, the industry is seeing a slowdown in less profitable electric vehicle (EV) sales.

GM's CFO, Paul Jacobson, said the company will continue buying back shares as long as the stock remains undervalued. Analysts, on average, rate GM as overweight with a target price of $80. 86.

GM's Stock Soars: What's Driving the Surge?

Actions