What Has General Motors (GM) Stock Done for Investors?
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By Neil Patel – Dec 19, 2025 at 4:30AM ESTKey PointsGM shares have accelerated in the fast lane in the past year, driven by earnings exceeding Wall Street estimates. A key part of the investment thesis comes down to aggressive share buybacks. The stock's valuation might be cheap for a reason. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: GMGeneral MotorsMarket Cap$76BToday's Changeangle-down(0.84%) $0.68Current Price$81.19Price as of December 18, 2025 at 3:58 PM ETThis Detroit automaker is starting to win over the investment community.General Motors (GM +0.84%) has been around for quite some time, with its founding dating back to 1908. This is one of the biggest car makers on Earth, with trailing-12-month revenue of $187 billion and 1.6 million units sold just in the latest quarter. Popular models include the Chevy Equinox and Silverado. What has this well-known automotive stock done for investors? Image source: Getty Images. GM shares are having their moment Over the past five years, GM shares have produced a total return of 101% (as of Dec. 15), which includes dividends. This gain exactly matches the performance of the S&P 500. Investors can be pleased with seeing their starting capital double in half a decade. The Detroit car manufacturer has crushed the benchmark index with total returns of 56% and 117% in the past 12 months and three years, respectively. GM stock is currently trading at its all-time high, demonstrating the market's bullishness. Traditional automakers' days of dominating the industry were thought to be over, since the belief was that electric vehicles would take over the market rapidly. This proved not to be the case. And it has somewhat reduced what was a key risk factor for GM, which generates the vast majority of its revenue from gas-powered cars.Advertisement GM's share price has been lifted by an impressive streak of financial results that have exceeded Wall Street estimates. In the past 13 straight quarters, the business has reported earnings per share (EPS) that came in better than analysts' forecasts. This was true in the most recent period (the third quarter of 2025, ended Sept. 30), where GM posted adjusted EPS of $2.80 and revenue of $48.6 billion, with demand for its SUVs through the roof. And management upped the full-year guidance. The stock soared 15% on the day of the news. Another tailwind working in GM's favor has been the leadership team's capital allocation policy. The business produces positive free cash flow, allowing it to return capital to shareholders in the form of stock buybacks. In the past 12 months, GM has shrunk its outstanding share count by 15%. ExpandNYSE: GMGeneral MotorsToday's Change(0.84%) $0.68Current Price$81.19Key Data PointsMarket Cap$76BDay's Range$80.40 - $81.9752wk Range$41.60 - $83.04Volume430KAvg Vol9.8MGross Margin9.37%Dividend Yield0.70% The stock's cheap valuation reflects industry challenges Even though the stock has trounced the market in the past year, the valuation is still very attractive. Investors can scoop up shares of GM at a forward price-to-earnings ratio of 6.9. While buying the stock might appear to be a compelling proposition, it's worth highlighting the market's potential concerns. Like its peers, GM must deal with cyclical demand trends, huge capital expenditures, low margins, and intense competition. This should keep enthusiasm in check. Read NextNov 2, 2025 •By Jeremy Bowman2 Dirt Cheap Stocks to Buy With $2,000 Right NowNov 2, 2025 •By Rich SmithHorrible News! GM's Best-Selling Equinox EV Just Got RecalledOct 30, 2025 •By Matthew BenjaminWhy Did GM Stock Suddenly Jump 20% Higher?Oct 28, 2025 •By Daniel Miller3 Reasons to Buy this Way-too-Overlooked Top StockOct 25, 2025 •By Daniel MillerWhy This Top Stock Rocketed 15% Higher TuesdayOct 23, 2025 •By Travis HoiumThe Best Auto Stock Today (and It Isn't Tesla)About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedGeneral MotorsNYSE: GM$81.19 (+0.01%) $+0.68*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement