General Motors Co. GM is set to announce its fourth-quarter earnings on Tuesday, Jan. 28. Wall Street expects earnings of $1.86 per share and revenues of $43.61 billion, with the report due before the market opens.

Over the past year, GM’s stock has risen 52.33%. It has gained 22.11% in the last six months and 4.94% so far this year.

Regulatory Challenges and Workforce Changes May Affect Investor Confidence

The Federal Trade Commission (FTC) has initiated actions against GM and OnStar regarding the alleged improper handling of driver data. This enforcement prohibits the companies from sharing geolocation and driving behavior information with consumer reporting agencies for five years. Although this does not directly affect GM’s vehicle production, ongoing regulatory scrutiny may lead to increased compliance costs and potential damage to the company’s reputation.

On another front, GM has been implementing job cuts as part of a revised performance evaluation system, which prevents terminated employees from reapplying. Although this strategy aims to boost efficiency and keep top performers, it may create a tense work environment and concerns about employee morale.

Investors are closely monitoring these developments to see how they may affect GM’s performance in future quarters.

Read Also: How To Earn $500 A Month From General Motors Stock Ahead Of Q4 Earnings

Positive Momentum in GM Stock Ahead of Q4 Earnings

Now, let’s delve into the technical aspects of GM stock.

Chart created using Benzinga Pro

The stock is currently trading at $53.91, surpassing its eight, 20, and 50-day moving averages, indicating a strong bullish trend. The eight and 20-day simple moving averages show a positive trajectory in the short-to-medium term, while the 200-day moving average remains bullish, signaling sustained long-term momentum.

The Moving Average Convergence Divergence (MACD) stands at 0.17, adding support to the bullish sentiment. Additionally, the Relative Strength Index (RSI) currently sits at 55.52, suggesting neutral momentum.

Although the technical indicators appear favorable, investors should be wary of possible selling pressures that may cause short-term fluctuations.

Analysts Forecast Potential Challenges Ahead for GM

Ratings & Consensus Estimates: Analysts hold a consensus rating of Buy for GM stock, with an average price target of $57.06. Firms like Deutsche Bank, UBS, and Wells Fargo recently set their targets around $53, which indicates a potential downside of 2.52% from current levels.

GM Price Action: At the time of publication, GM shares were trading up by 0.9% to $54.44.

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