GM Faces Regulatory Heat, Bullish Trends Signal Strength Ahead Of Q4

General Motors Co. GM will report its fourth-quarter earnings on Tuesday, Jan. 28. Wall Street anticipates earnings of $1.86 per share, with revenues projected at $43.61 billion, as it reports before the market opens.

The stock is up 52.33% over the past year, 22.11% over the last six months, and 4.94% year-to-date.

FTC Investigation, Workforce Restructuring Could Impact Investor Sentiment

The FTC has taken action against GM and OnStar over alleged misuse of driver data, banning them for five years from sharing geolocation and driving behavior information with consumer reporting agencies. While this enforcement does not directly impact GM's core auto business, increased regulatory scrutiny could lead to long-term compliance costs and potential reputational risks.

Additionally, GM is continuing job cuts under a revised performance evaluation system, with terminated employees prohibited from reapplying. While this move is intended to improve efficiency and retain top talent, it could create a high-pressure work environment and raise concerns over employee morale.

Investors will be watching closely to see if these changes impact GM's operational performance in the coming quarters.

Read Also: How To Earn $500 A Month From General Motors Stock Ahead Of Q4 Earnings

GM Stock Bullish Ahead Of Q4 Earnings

Let's take a look at GM stock technicals.

Chart created using Benzinga Pro

The stock is currently trading at $53.91, above its eight, 20 and 50-day moving averages, signaling a bullish trend. The eight and 20-day simple moving averages indicate a bullish short-to-medium term trend, while the 200-day SMA also remains bullish indicating long-term bullish momentum.

The Moving Average Convergence Divergence (MACD) stands at 0.17, further supporting the bullish outlook. Meanwhile, the Relative Strength Index (RSI) is at 55.52, suggesting neutral momentum.

Despite the bullish technicals, investors should remain cautious of potential selling pressure, which could introduce short-term volatility.

GM Analysts See Downside Ahead

Ratings & Consensus Estimates: The consensus analyst rating on GM stock stands at a Buy with a price target of $57.06. Deutsche Bank, UBS and Wells Fargo, who recently rated GM stock, have an average price target of $53, implying a 2.52% downside for the stock.

GM Price Action: Shares of GM were up 0.9% at $54.44 at the time of publication Monday.

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