Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto giant General Motors (GM 1.20%) has received a distressing two-star ranking.
With that in mind, let's take a closer look at General Motors and see what CAPS investors are saying about the stock right now.
General Motors facts
|
Headquarters (Founded) |
Detroit (1908) |
|
Market Cap |
$37.4 billion |
|
Industry |
Automobile manufacturers |
|
Trailing-12-Month Revenue |
$150.9 billion |
|
Management |
Chairman/CEO Daniel Akerson |
|
Return on Equity (Average, Past 3 Years) |
15.5% |
|
Cash/Debt |
$31.9 billion / $16.7 billion |
|
Competitors |
Ford Motor (F 0.69%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 22% of the 1,040 members who have rated General Motors believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, afarrell81, succinctly summed up the bear case for our community:
GM consistently lags its competitors in innovation and design. Public perception in the U.S. also took a hit with the bailout and could lead "buy-American" consumers to choose Ford over GM when purchasing automobiles in the future. Last and most importantly, GM cannot be cost competitive when you consider their higher labor costs and future obligations to their retirees. This will ultimately prevent them from being able to invest in R&D to the extent necessary to become an industry leader in innovation.
Of course, that short pitch come close to telling the entire story for GM. You're in luck, though. The Fool's brand new premium report on GM tells all sides of the story for one of the most compelling industrial companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
