GM Posts Largest Gain Since the Pandemic: Shares Still Look Cheap
Written by Leo Miller. Published 10/23/2025.
Key Points
- GM just saw its largest single-day gain in over five years, driven by its Q3 2025 results.
- The company smashed estimates, increased its market share, and demonstrated strong cost management.
- Further upside looks to be well in play, with GM still trading at an inexpensive valuation compared to many automakers.
Shares of Detroit Three automaker General Motors (NYSE: GM) were down for much of 2025 as tariffs, EV challenges and economic uncertainty weighed on sentiment. That shifted sharply after GM's Q3 2025 report, which delivered one of the company's biggest positive surprises in recent memory.
On Oct. 21, GM shares jumped 15% — the largest single-day gain in 2025 and the second-largest since the company's 2010 restructuring. The only larger one-day move was March 24, 2020, when markets rebounded from the COVID-19 crash: GM rose 20% that day while the S&P 500 climbed 9%.
Shield Your Wealth from Gov't Overreach (Ad)
Your savings and retirement aren't as safe as you think.
Washington just declared that your money isn't truly yours.
Before the next financial lockdown, learn how to keep what you've earned.
Below we examine the results that produced this historic move and explain why GM's shares may still have considerable upside. Even after the spike, GM's valuation remains depressed relative to auto peers while its outlook has improved.
GM Crushes Estimates on the Top and Bottom Lines
GM reported revenue of about $48.6 billion, a 0.3% decline year over year, but well above Wall Street's pessimistic forecasts. Sales were roughly $4 billion higher than expected after analysts had forecast about an 8.5% drop. The company also beat on adjusted earnings per share (EPS), reporting $2.80.
Adjusted EPS of $2.80 represented a 5% decline from the prior year but beat Street's $2.32 estimate by $0.48. In other words, the EPS shortfall was a fraction of the roughly 22% decline analysts had expected.
Management said the outperformance should persist and raised full-year guidance across several metrics. Adjusted EPS was increased by $1 at the midpoint to about $10.13. GM also now expects $1.25 billion more in operating income and $1.75 billion more in adjusted automotive free cash flow than previously forecasted.
GM Boosts Auto Market Share, Reduces Tariff Impact Forecast
GM led the U.S. auto market in Q3 with 710,000 deliveries, topping rivals while offering fewer incentives than the industry average. That helped the company achieve its highest Q3 U.S. market share since 2017 — 17%. GM also reported record EV sales of 67,000, the second-highest in the U.S. behind Tesla (NASDAQ: TSLA).
The scheduled end of certain EV tax credits in September prompted a buying surge, but GM still leads the industry in EV market-share growth for 2025, underscoring its strength in the segment. The company reduced its 2025 tariff-impact guidance by $500 million at the midpoint, showing progress in mitigating external pressures. GM also returned significant capital to shareholders, repurchasing $1.5 billion of stock. Overall, the quarter left investors with little to dislike.
Resilient Demand, Effective Management and Low Valuation
The results show GM is succeeding on two key fronts: demand and cost control. Despite tariffs and a weaker consumer backdrop, the company produced roughly the same revenue as a year ago. The University of Michigan Consumer Sentiment Index fell more than 20% from September 2024 to September 2025, yet GM buyers held up — a constructive signal for the business.
GM also appears to be managing higher costs effectively, as reflected in the EPS beat and the reduced tariff guidance. Management's ability to adapt in tough conditions is another positive. GM expects 2026 to be stronger than 2025 as it works to reduce EV losses and further mitigate tariff effects.
Even after the rally, GM trades at a forward price-to-earnings (P/E) multiple of roughly 6.6x, well below the industry median of about 10x–11x and massively lower than Tesla's ~227x forward P/E. It also trades below Ford Motor's (NYSE: F) roughly 9x. That makes GM look like a value stock with improving fundamentals. Analysts at Wedbush seemed to agree; following the results they raised their price target to $75, implying roughly 13% upside from the Oct. 21 close.
This email is a paid advertisement sent on behalf of Banyan Hill Publishing, a third-party advertiser of DividendStocks.com and MarketBeat.
This ad is sent on behalf of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482.
If you have questions or concerns about your subscription, don't hesitate to contact our South Dakota based support team at contact@marketbeat.com.
If you no longer wish to receive email from DividendStocks.com, you can unsubscribe.
© 2006-2025 MarketBeat Media, LLC. All rights protected.
345 N Reid Pl., Sixth Floor, Sioux Falls, South Dakota 57103-7078. United States..