NEW YORK (TheStreet) -- General Motors Co. (GM) announced on Friday that it is recalling over 2,280 of its latest mid-size pickup trucks in the U.S., regarding a faulty airbag issue, related to the safety feature's wiring, the Wall Street Journal reports.
The company, which designs, builds, and sells a variety of cars, trucks, and automobile parts across the world is recalling the 2015 Chevrolet Colorado and the GMC Canyon pickups.
GM is concerned the driver side airbag was not properly wired and the problem could reverse the deployment sequence and disturb the deployment timing of the air bag, the Journal added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
GM said it does not know of any injuries related to the air bag issue, and added that it will fix the issue for free, the Journal said.
Shares of GM are up 0.82% to $33.36 at the start of trading on Friday.
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 a few notable strengths, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these 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 revenue growth came in higher than the industry average of 18.0%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
- 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 $2.35 versus $2.93 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.35).
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Automobiles industry average. The net income has decreased by 14.3% when compared to the same quarter one year ago, dropping from $1,717.00 million to $1,471.00 million.
- GM has underperformed the S&P 500 Index, declining 14.87% from its price level of one year ago. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full analysis from the report here: GM Ratings Report