NEW YORK (TheStreet) -- General Motors (GM) - Get Report stock is up by 1.02% to $28.85 in mid-morning trading on Tuesday, after CEO Mary Barra said the company plans to increase technology features in its vehicles, Reuters reports.
The company's vehicles could be customized to user preferences with connectivity features embedded in the car, leading to the possibility of a car sharing program, Barra told Reuters.
GM will also launch SuperCruise, a feature that allows for autonomous driving, next year, and has pushed to increase 4G LTE data connections in its vehicles.
"We sold more 4G LTE connected vehicles in three days in June than the rest of the industry did in the first half of the year," GM executive director for connectivity Phil Abram told Reuters.
GM wants to keep its own connectivity software and other technology in its vehicles to be able to measure how drivers respond to the features, including automatic braking and automated highway driving, Barra added.
Separately, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 301.8% when compared to the same quarter one year prior, rising from $278.00 million to $1,117.00 million.
- Net operating cash flow has significantly increased by 51.07% to $5,786.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.16%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Automobiles industry and the overall market, GENERAL MOTORS CO's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- GENERAL MOTORS CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $1.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($4.51 versus $1.64).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.4%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: GM