General Motors’ shares have returned almost 30% this year and Bloomberg was praising the company as an ESG play. ESG means companies with good environmental, social, and governance credentials. General Motor’s estimated price-to-earnings ratio is around 8.1 compared with 20 for the S&P 500, according to data compiled by Bloomberg. General Motors itself says it has $2 billion in digital subscription revenue with 70% EBIT margins.
Over the last 10 years, General Motors has risen 8 times between Oct 11 and Dec 01. The average rise has been 8.77% and the largest gain was in 2020 with a 38.71% rise. The largest loss was in 2011 with a -6.84% loss.
Major Trade Risks: The main risk to this trade is if there is a sharp correction in stocks generally on the problem the Fed face with surging inflation and slowing growth.