Oct. 02, 2025 10:50 PM ETGeneral Motors Company (GM) StockF, GMBernard Zambonin1.25K FollowersSummaryGeneral Motors has rallied despite tariff headwinds and downward earnings revisions, but its current premium valuation versus historical levels appears disconnected from pressured margins.Analysts have sharply cut EPS forecasts for 3Q25 and 4Q25, yet the market keeps multiples elevated.EBIT-adjusted margins in North America fell to 6.1%, far below the double-digit target, testing bullish expectations.Capital allocation (buybacks paused) and EV execution will be the real proof points for sustaining GM’s valuation re-rating.The stock may face a short-to-medium-term correction until margins recover and tariff impacts fade.JHVEPhoto/iStock Editorial via Getty ImagesInvestment ThesisGeneral Motors (NYSE:GM) has enjoyed strong bullish momentum over the last twelve months, but more precisely since April of that year, when tariffs hit U.S. equities hard at first glance, but subsequently, with the impacts betterThis article was written byBernard Zambonin1.25K FollowersEquity Research Analyst at DM Martins Research.The best opportunities often don’t scream for attention. I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins Research. My articles and analyses are for educational and informational purposes only and should not be taken as investment advice. Always do your own due diligence before making any investment decisions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments