General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

General Motors’ valuation appears restrained: the market is paying noticeably more for earnings than is typical for the industry, but for revenue, book value, and free cash flow it is doing the opposite — paying less. A high P/E combined with weak profitability means the current price already reflects expectations for recovery, and the margin of safety in earnings does not yet look convincing. P/S of 0.44, P/B of 1.19, and especially P/FCF of 4.26 look supportive from a valuation standpoint, but this positive is partly offset by the fact that margins and returns on capital remain very low relative to the industry. ROE, ROA, ROI, and return on tangible equity are significantly below the median and have also deteriorated noticeably over the years, which points to weak efficiency in the use of capital. Operating and net margins have also fallen to around 1%, while gross margin declined to 5.74%, so earnings quality does not yet support an aggressive upward rerating. On the other hand, revenue and absolute profit remain large, EBITDA and net income are positive, and the cash position on the balance sheet looks comfortable. Liquidity is acceptable, but the current ratio is below the industry median, which means the balance sheet cannot be considered risk-free. Leverage is high: debt/equity is significantly above the median, and long-term debt remains substantial, so financial leverage increases sensitivity to the cycle and interest rates. Dividend yield is modest and declining, so the dividend factor does not provide strong support for the valuation. Overall, the fundamentals are rather neutral with a cautious tilt: cheap revenue and FCF multiples support the stock price, but weak profitability, high debt, and an expensive P/E limit rerating potential. For an investor, this means the base target looks slightly overstated and calls for a moderate conservative adjustment rather than a radical revision.

General Motors Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Low P/S, P/B, and P/FCF support GM, but weak profitability, high debt, and a high P/E limit valuation upside.

Key Points
Ford maintains a robust global presence through its commercial Ford Pro division and a network of over 8,000 dealerships.
General Motors shows positive net margins and a lower debt-to-equity ratio as it transitions its fleet to electric power.
Which legacy automaker represents the better long-term investment for your portfolio today?
As the automotive landscape shifts toward electrification, investors must decide which legacy giant offers the best path forward. Ford Motor (NYSE:F) and General Motors (NYSE:GM) are now racing for dominance in this new era.
Ford is doubling down on its commercial business and iconic truck lineup while navigating a complex transition to electric power. General Motors is leveraging its global scale and proprietary battery technology to defend its market share. Both companies are currently undergoing massive structural changes, making a direct comparison essential for your portfolio.
The case for Ford Motor
Ford Motor focuses on trucks, SUVs, and its Ford Pro commercial vehicle division while operating within the broader universe of consumer discretionary stocks. The company serves retail buyers, government agencies, and rental fleet operators through nearly 8,226 global dealership locations. Its 2025 corporate report indicates that the company employs approximately 171,000 people across its worldwide operations.
In its latest annual report for FY 2025, revenue reached approximately $187.3 billion, representing growth of roughly 1.2% compared to the previous year. However, the company reported a net loss of nearly $8.2 billion, resulting in a net margin of negative 4.4% for the fiscal year. This loss highlights the heavy capital requirements facing the company as it balances traditional combustion engines with new electric designs.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 4.7x, which compares total debt to shareholder equity to show borrowing reliance. The current ratio of nearly 1.1x indicates whether the business can cover its short-term liabilities with assets expected to turn into cash within a year. Free cash flow for the year was roughly $12.5 billion, representing the cash generated from operations after paying for capital expenditures like factory updates.
The case for General Motors
General Motors designs vehicles under the Chevrolet, Buick, GMC, and Cadillac brands and manages a network of roughly 10,842 authorized dealership locations. It targets retail and fleet customers, including commercial businesses and daily rental companies, while maintaining strategic joint ventures in China. The company employs over 151,000 people globally to support its manufacturing and engineering efforts.
For FY 2025, the company reported revenue of close to $185.0 billion, representing a slight decline of approximately 1.3% from the prior year. The company achieved a net income of nearly $2.7 billion, which equals a net margin of roughly 1.5% for the year. This profitability remains a key differentiator as the company invests in its next generation of vehicles and realigns its manufacturing capacity.
As of its December 2025 balance sheet, General Motors had a debt-to-equity ratio of about 2.1x, which compares total debt to shareholder equity. The current ratio of nearly 1.2x indicates whether the business can cover its short-term liabilities with liquid assets. Free cash flow reached approximately $11.1 billion, representing the cash remaining after paying for capital expenditures like battery production facilities.
Risk profile comparison
Ford faces significant risks from global supply chain disruptions and shortages of critical raw materials like lithium and cobalt. Ongoing vehicle defects and recall campaigns, including those monitored under a 2024 NHTSA consent order, continue to pose financial and reputational threats. The company also faces challenges realigning its electric vehicle strategy while competing with rivals like Tesla and Toyota Motor.
General Motors deals with high fixed labor costs and manufacturing realignments that limit its flexibility during market downturns. In May 2026, the company settled allegations regarding the collection of driver data, highlighting ongoing cybersecurity and privacy risks. The business also faces numerous class action lawsuits regarding vehicle performance while facing intense competition from rivals like Tesla and Toyota Motor.
Valuation comparison
General Motors currently carries a lower Forward P/E based on future earnings estimates, while Ford offers a lower P/S ratio relative to its annual sales.
Metric
Ford Motor
General Motors
Forward P/E
7.6x
6.4x
P/S ratio
0.3x
0.4x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with General Motors. Its core business is delivering excellent results, with record quarterly earnings, a raised full-year outlook, and billions returned to shareholders through dividends and buybacks. The truck and SUV franchise is as strong as it has been in years, and the EV business is scaling faster than most investors expected.
Ford, to its credit, raised its full-year outlook after a solid second quarter and achieved the top ranking among mainstream brands in the J.D. Power Initial Quality Study. But Ford has been navigating a complicated restructuring for several years now, and the results keep getting interrupted by unexpected costs. A shortage of aluminum from a key supplier and a large unexpected expense from backing out of a battery plant partnership are the latest examples of a business that has yet to string together the kind of consistent execution that long-term investors look for.
GM is executing cleanly right now, while Ford is navigating too many moving parts to inspire the same confidence. Both companies have the brands and the ambition to compete in the EV era, but GM is doing it from a position of strength that Ford has not yet matched.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Sara Appino has positions in General Motors and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

Ford Motor vs. General Motors: Which Automotive Stock Is a Better Buy in 2026?

MP Materials MP is trading at a forward 12-month price/sales multiple of 14.29X, significantly above the industry average of 1.43X. The stock carries a Value Score of F, suggesting it is expensive at current levels.
Among rare earth peers, USA Rare Earth, Inc. USAR and Lynas Rare Earths Limited LYSDY trade at considerably lower 8.31X and 9.43X, respectively.
MP Materials Stock Trails Industry Performance
MP Materials shares have declined 12.8% over the past six months against the industry’s 8.7% growth. The Zacks Basic Materials sector gained 3% while the S&P 500 rose 12.8%. Lynas Rare Earths and USA Rare Earth have declined 24.1% and 19.1%, respectively.
MP's 6-Month Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
The stock’s premium valuation appears difficult to justify given its recent underperformance. However, MP Materials is undergoing a significant transition toward higher-value rare earth products and domestic magnet production. Its latest financial results, production ramp-up, growth initiatives and execution risks provide important clues about whether the premium can be sustained.
MP Delivered Revenue Growth in Q2, Costs Remain Elevated
MP generated second-quarter 2026 total revenues of $108.5 million, up 89% year over year. The company also recognized $17.6 million in income related to a price protection agreement (PPA) with the Department of War (DoW).
Materials segment revenues surged 155% to $95.6 million, driven by higher NdPr sales volumes and pricing, although the absence of concentrate sales partly offset the gains. Magnetics segment revenues fell 17% to $16.5 million, as the start-up of magnet production and related pricing mechanisms weighed on results despite higher production of magnetic precursor products at the Independence facility.
Cost of sales climbed 43% due to higher sales volumes, while selling, general and administrative expenses rose 28% due to increased personnel costs. Start-up costs surged to $14 million from $0.76 million in the year-ago quarter due to the ramp-up of start-up activities for magnet production and chlor-alkali facilities, and costs associated with initial production of magnets at Independence.
Higher costs led to an operating loss of $32 million in the quarter, narrower than the loss of $43.9 million in the year-ago quarter. This was the 12th consecutive quarter of operating loss for the company, reflecting ongoing margin pressure as it continues transitioning toward higher-value separated rare earth products.
MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
MP Ramps Up NdPr and Advances Magnet Production
NdPr production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP remains on track to begin producing terbium and dysprosium later this year and first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP Materials is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company GM for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP’s Earnings Estimates Trend Lower Cautious Investor Sentiment
The Zacks Consensus Estimate for MP Materials’ 2026 earnings stands at eight cents per share against a loss of 24 cents in 2025. The 2027 earnings estimate is currently pegged at 88 cents per share, implying growth of 1,009%.
Image Source: Zacks Investment Research
However, the earnings outlook has weakened recently, with consensus estimates for both 2026 and 2027 revised downward over the past 90 days.
Image Source: Zacks Investment Research
Capacity Expansion Creates Long-Term Growth Potential for MP
The company is expanding operations at its Independence facility and has begun construction of the 10X magnetics facility. Commissioning activities for scaled heavy rare earth separation are also expected to begin soon at Mountain Pass. 10X will significantly expand MP’s fully integrated U.S. rare-earth magnetics manufacturing platform, which already encompasses mining and refining, metallization and alloying, sintering, finished magnet production and closed-loop recycling. Once operational, the new campus is expected to contribute to the company’s total production capacity of approximately 10,000 metric tons of NdFeB rare-earth magnets per year, advancing the nation’s ability to produce these strategic components domestically.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple AAPL on magnet recycling, magnet production and joint development also continues to advance.
High Costs and Execution Risks Could Limit Near-Term Upside
Producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production due to additional processing requirements, chemical inputs, labor and maintenance. Cost of sales is thus expected to trend higher, reflecting increased sales of NdPr oxide and metal along with added costs associated with magnetic precursor products. Start-up costs are also likely to increase in the coming quarters.
Management expects near-term Magnetics results to be affected by the roll-off of precursor revenues, early magnet production scaling, customer testing milestones and continued investment in personnel and product development. Full-year 2026 capital expenditures are expected at $500-$600 million as 10X and other projects advance. These costs can keep profitability and free cash flow uneven until higher-value production reaches greater scale.
Execution also remains a key risk. MP is simultaneously commissioning its dysprosium and terbium circuit, progressing through customer qualification at Independence, preparing for commercial magnet shipments and constructing the 10X facility. Delays in commissioning, customer qualification, production yields or construction could push out anticipated revenue and cash-flow benefits.
Our Final Take on MP Stock
MP Materials has a compelling long-term growth story, supported by rising demand for domestically produced rare earth materials, an integrated business model and investments in U.S. magnet manufacturing. Successful execution of its expansion projects could strengthen its position in the domestic rare earth supply chain and improve its earnings profile over time.
MP continues to report operating losses, faces elevated costs and substantial capital requirements, while earnings estimates have moved lower. More importantly, the stock trades at a significant premium to both the industry and key rare earth peers despite underperforming the broader market and industry over the past six months. Investors may want to remain on the sidelines until the company demonstrates more consistent earnings improvement and better execution of its expansion plans.
MP currently carries a Zacks Rank #5 (Strong Sell).
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

MP Trades at a Premium Valuation: Buy, Sell or Hold the Stock?

Key Points
Ford aims to refresh 80% of its North American vehicle portfolio by volume by 2029.
Defense contracts and battery energy storage systems are two examples of how Ford is thinking outside the box.
Ford's dividend remains a lucrative high-yield option for investors, especially considering its special dividends.
There are a lot of moving parts and variables for investors to consider when researching Ford Motor Company (NYSE: F). On one hand, Ford is a Detroit icon and a global legacy automotive giant, which comes with much more stable business than upstart companies such as Rivian (NASDAQ: RIVN) or Lucid (NASDAQ: LCID). On the other hand, Ford doesn't intend to become extinct and is investing heavily in the future of software-defined vehicles, autonomous technology, and electric vehicles (EV), and is even thinking outside the box by trying to win defense contracts. If you're scratching the surface of Ford as a long-term investment, here are three things you need to consider.
Portfolio refresh!
It's no secret in the automotive industry that fresh product sells faster, and it sells without needing margin-eroding incentives and deals. Investors may have missed the details, but Ford created a new team: product creation and industrialization. While it might take a little time for the name to catch on, this team is responsible for a massive portfolio refresh.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
More specifically, by 2029 Ford plans to refresh a staggering 80% of its North American portfolio by volume, and 70% of its global portfolio by volume. Included in that portfolio turnover is the first vehicle on Ford's lauded Universal Electric Vehicle (UEV) platform, the Fathom midsize pickup. The refresh will also deliver the next-generation F-150 and F-Series Super Duty. These vehicles haul big bucks and lucrative margins.
An overlooked aspect of this refresh will be what it does to the fleet of Ford vehicles hitting the road. By 2030, 90% of Ford's vehicles by volume will feature updated electrical architectures and next-generation over-the-air capability. The reason this is important is it enables more rapid rollout of Ford's BlueCruise and Ford Digital Experience, which will aid the company in progressing toward Level 3 autonomous driving and help the company improve the value of its digital offerings, which can be monetized.
Over the next few years, Ford's product portfolio in its most profitable region, North America, will be more fresh, more advanced, and more profitable.
Outside the box
Young investors likely have never heard of Ford Aerospace division. That's because Ford completely exited the defense sector in 1990, but after rival General Motors (NYSE: GM) revived GM Defense in 2017, it seems Ford felt compelled to reconsider the industry. Ford has secured a U.S. Department of Defense prototype contract to build three heavy-duty tactical truck prototypes from the automaker's well-known F-Series Super Duty platform. For an example of how these contracts can add up, consider Ford's bid for the U.K. Ministry of Defence's Light Mobility Vehicle program, valued at $2.7 billion.
A completely different example of how Ford is evolving toward a new and potentially more lucrative future can be found with Ford Energy. Behind the scenes, Ford prepared a new business by securing supply chains and manufacturing sites, and what the automaker delivered was a subsidiary that will provide battery energy storage systems (BESS) for utilities, artificial intelligence (AI) data centers, and other large industrial customers. Ford plans to produce roughly 20 GWh annually with the first customer deliveries planned late next year. Analysts with Morgan Stanley and Barclays predict Ford Energy at full scale could generate between $500 million and $600 million in annual operating profit (EBIT) by the end of the decade.
Ford may be a legacy automaker, but that doesn't mean it isn't thinking outside the box to drive new streams of revenue and bottom-line profits.
Sleep at night
Ford has long been known for its lofty dividend, which currently pays out $0.15 per share quarterly, for a total $0.60 per share annually. That puts its current dividend yield at about 4.1%, which is lower than normal partly due to a spike in Ford's share price during May. What income investors often overlook with Ford's dividend is that the company frequently dishes out "special dividends" when it has a bit of extra cash and doesn't want to permanently raise the baseline dividend commitment. In early 2024, Ford dished out an $0.18-per-share special dividend. It delivered another $0.15-per-share special dividend in February 2025.
Is Ford a buy?
If you're an investor scratching the surface of Ford as a long-term investment, it's important to keep in mind that the company is driving a massive portfolio refresh in its profit engine, North America, while thinking outside the box for new revenue streams with Ford Energy and defense contracts. To top it off, the company offers a lucrative dividend yield with frequent special dividends helping investors offset the cyclicity of the auto industry. Ford has work to do to change the narrative of its low-margin automotive business, but that's something it can do as more high-margin business seeps into the sector through driverless vehicle technology and as digital subscription services become more prevalent.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 9, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Overlooked Reasons Now Might Be the Time to Buy Ford Stock

In the latest close session, General Motors (GM) was down 2.37% at $83.76. This change lagged the S&P 500's 0.48% loss on the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
Shares of the an automotive manufacturer have depreciated by 3.98% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 5.5%, and the S&P 500's loss of 0.97%.
Investors will be eagerly watching for the performance of General Motors in its upcoming earnings disclosure. The company is expected to report EPS of $3.37, up 20.36% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $48.22 billion, reflecting a 0.77% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $13.31 per share and a revenue of $185.7 billion, demonstrating changes of +25.57% and +0.37%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for General Motors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. General Motors presently features a Zacks Rank of #3 (Hold).
Digging into valuation, General Motors currently has a Forward P/E ratio of 6.45. For comparison, its industry has an average Forward P/E of 18.13, which means General Motors is trading at a discount to the group.
It's also important to note that GM currently trades at a PEG ratio of 0.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Here's Why General Motors (GM) Fell More Than Broader Market

Key Points
Home loan rates are double what they were five years ago.
Yields look likely to remain elevated for the foreseeable future.
Most investors have heard by now that yields on government bonds are soaring. It's been on the front page of every newspaper.
Yields are rising as bond investors around the world are selling many of their longer-maturity bonds -- like those maturing in five, 10, and 30 years -- amid worries about rising U.S. government debt and inflation. When they sell those bonds, their prices fall and their yields, which move in the opposite direction of price, rise.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That might seem to many stock investors like a bond market problem -- and thus nothing to really worry about. But in fact, rising yields have a huge impact on the stock market in multiple ways.
One particular impact of rising yields is on homebuilder and automaker stocks. Because auto and home loans are based on bond yields, higher yields make home and auto purchases more expensive to finance.
The average car loan length is about six years -- 5.8 years for new cars and 5.6 years for used cars. So, lenders use the five-year Treasury yield as their base index cost. And that yield has risen this year to 4.55%, up from 3.73% as of Jan. 1. As a result, the average rate on a 60-month car loan is now around 7%, though it was as high as 9.45% in April.
As a result, buying a car is now more expensive. Investors know this, and that's part of the reason automaker stocks are down all of a sudden. General Motors (NYSE: GM) shares have fallen 5% over the past month, while Ford Motor Company (NYSE: F) shares have dropped 5.8%.
Rising yields only add to the housing sector's pain
It's a similar story with mortgage rates. A typical mortgage is 30 years, but the rate on those loans rises and falls with the 10-year Treasury yield because many homeowners refinance their loans long before 30 years. That yield is soaring, hitting 4.8% this week, from about 4.1% at the beginning of the year.
As a result, the average 30-year mortgage rate now stands at 6.7%, according to Freddie Mac, double what it was five years ago. That higher rate has two big negative impacts on the housing market: It makes buying a house much more expensive, putting a home purchase out of reach for many Americans. It also discourages longtime homeowners like me, who enjoy mortgages with rates near 3%, from selling, because they don't want to take on a new home loan at twice the interest rate.
That's partially why homebuilder stocks are suffering. Lennar (NYSE: LEN) is down almost 19% this year, though it rebounded a bit in recent weeks. PulteGroup (NYSE: PHM) is up 5.6% for the year but has fallen more than 2% over the past month. And D.R. Horton (NYSE: DHI) has fallen 1.2% this year and about 0.5% over the past month.
Of course, the housing industry has been suffering for a while, as rising home prices -- due to a national shortage of some 5 million homes -- sent the median sales price of a new home above $440,000 in June. That puts a home purchase well out of the reach of many Americans. And rising mortgage rates only aggravate that unaffordability.
Yields look to remain elevated for the foreseeable future
The question for these companies and their shareholders, then, is, when will yields -- and the borrowing rates based on them -- come back down?
That's hard to say. Headline inflation of 3.7% remains well above the Federal Reserve's 2% target. And U.S. government debt, which just hit a whopping $40 trillion, looks to only accelerate, with lawmakers in Washington proving unable to bring it down right now. Finally, the massive bond issuance by hyperscalers to fund their AI data centers -- hundreds of billions of dollars -- is competing with Treasury bonds for buyers. That also pushes Treasury yields higher, and it only looks to continue.
Bottom line: Automakers and homebuilder stocks have a new headwind that doesn't look to die down anytime soon.
Should you buy stock in Lennar right now?
Before you buy stock in Lennar, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lennar wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 4, 2026.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends D.R. Horton and Lennar. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

Bond Yields Are Soaring. Why That's Bad for Homebuilder and Automaker Stocks.

Ford Motor Company F is recalling 148,663 Mustang vehicles over an electrical wiring issue that could result in a loss of drive power or disrupt key functions, including the headlights, thereby raising the risk of a crash.
Per the National Highway Traffic Safety Administration (NHTSA), certain Mustang vehicles may have an electrical wiring defect that could cause a loss of propulsion or affect the windshield washer system, headlights, air conditioning or engine cooling fan.
The recall covers 2024-2026 Ford Mustang vehicles manufactured between Sept. 7, 2022, and June 9, 2026. NHTSA estimates that approximately 1% of the recalled vehicles may have the defect.
Ford is expected to notify affected owners by mail between Aug. 31 and Sept. 4, 2026. A follow-up notification will be sent once a remedy becomes available, which is currently expected around March 2027.
Owners can take their affected vehicles to a Ford or Lincoln dealership, where the engine compartment wiring harness ground terminals will be replaced at no cost. F carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Latest Updates on Recalls by Other Automakers
Tesla, Inc. TSLA is facing heightened regulatory scrutiny in China after regulators ordered the recall of about 2.98 million vehicles last month over concerns that emergency door-release systems could fail during a crash or power loss. The recall primarily affects Tesla’s China-made and imported Model 3, Model Y, Model S and Model X vehicles. The issue highlights safety concerns surrounding Tesla’s electrically operated, flush-fitting door handles, a design feature closely associated with the company’s modern EVs.
General Motors Company GM is facing an expanded U.S. safety investigation into engine failures affecting nearly 1 million pickup trucks and SUVs. GM previously recalled nearly 600,000 vehicles from the 2021-2024 model years over L87 engine problems linked to supplier quality issues. However, the issue has persisted despite recall repairs, with GM receiving nearly 7,000 complaints involving post-recall engine failures, while NHTSA has received 499 complaints.
F’s Price Performance, Valuation and Estimates
Ford has outperformed the Zacks Automotive-Domestic industry in the last six months. Its shares have gained 10.4% against the industry’s decline of 7.8%.
From a valuation perspective, F appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.32, lower than the industry’s 3.24.
The Zacks Consensus Estimate for Ford’s 2026 and 2027 EPS has moved up 20 cents and 9 cents, respectively, in the past 60 days.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

What's Behind Ford's Recall of Nearly 149K Mustang Vehicles?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, United Parcel Service Inc (Symbol: UPS) has taken over the #156 spot from General Motors Co (Symbol: GM), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of United Parcel Service Inc (Symbol: UPS), the market cap is now $78.10 billion, versus General Motors Co (Symbol: GM) at $75.74 billion.
Below is a chart of United Parcel Service Inc versus General Motors Co plotting their respective size rank within the S&P 500 over time (UPS plotted in blue; GM plotted in green):
Below is a three month price history chart comparing the stock performance of UPS vs. GM:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full UPS market cap history vs. the full GM market cap history.
At the closing bell, UPS is off about 1.5%, while GM is off about 1% on the day Tuesday.
Further UPS Research:

United Parcel Service Now #156 Largest Company, Surpassing General Motors

Key Points
General Motors consistently records a higher volume of revenue, while Tesla presents a faster rate of comparative percentage growth across the most recent quarters.
Over the last eight quarters, General Motors has maintained relatively flat and stable revenue totals quarter-over-quarter, whereas Tesla has experienced more pronounced downward volatility before recovering with a recent sequence of steady sequential increases.
Investors analyzing the two companies should carefully monitor whether the existing revenue gap continues to narrow steadily over the upcoming quarters, or if the relative difference between them begins to stabilize as time progresses.
General Motors: Demonstrating Consistency in Quarter-to-Quarter Revenue
General Motors (NYSE:GM) primarily designs, manufactures, and sells cars and trucks to individual consumers and commercial fleets.
It expanded a collaborative fast-charging network across forty states and secured a material science agreement for its racing division while navigating a federal investigation into engine reliability. It reported a 3% operating margin for the quarter ended June 30, 2026.
Tesla: Navigating Fluctuations and Recent Acceleration in Revenue
Tesla (NASDAQ:TSLA) manufactures and distributes electric vehicles (EVs) and solar storage systems to retail and commercial customers.
It entered a multi-party agreement to aggregate residential energy capacity and secured federal certification for a new vehicle model while recalling millions of automobiles in overseas territories. It recorded a 1% operating margin for the quarter ended June 30, 2026.
Why Revenue Matters for Retail Investors
Revenue serves as the most fundamental top-line financial indicator for investors seeking to measure the sheer volume of money a business collects from its regular ongoing commercial operations. This metric provides a clear picture of overall business scale before any employee salaries, material costs, administrative taxes, or debt financing expenses are subtracted from the corporate ledger.
Quarterly Revenue Trends for General Motors and Tesla
Calendar quarter
General Motors Revenue
Tesla Revenue
Q3 2024
$48.8 billion (quarter ended Sept. 30, 2024)
$25.2 billion (quarter ended Sept. 30, 2024)
Q4 2024
$47.7 billion (quarter ended Dec. 31, 2024)
$25.7 billion (quarter ended Dec. 31, 2024)
Q1 2025
$44.0 billion (quarter ended March 31, 2025)
$19.3 billion (quarter ended March 31, 2025)
Q2 2025
$47.1 billion (quarter ended June 30, 2025)
$22.5 billion (quarter ended June 30, 2025)
Q3 2025
$48.6 billion (quarter ended Sept. 30, 2025)
$28.1 billion (quarter ended Sept. 30, 2025)
Q4 2025
$45.3 billion (quarter ended Dec. 31, 2025)
$24.9 billion (quarter ended Dec. 31, 2025)
Q1 2026
$43.6 billion (quarter ended March 31, 2026)
$22.4 billion (quarter ended March 31, 2026)
Q2 2026
$48.0 billion (quarter ended June 30, 2026)
$28.2 billion (quarter ended June 30, 2026)
Data source: Company filings. Data as of Aug. 26, 2026.
Foolish Take
Comparing the revenue trends between General Motors and Tesla reveal key insights about them. Since the third quarter of 2024, General Motors has experienced both quarterly year-over-year sales growth and declines. This up and down trend is due to strategic decisions such as the company's prioritization of profit margins over vehicle volume, and a reset of its EV approach as consumer demand for electric automobiles slowed down.
General Motors stock soared to a 52-week high of $91.85 in July after strong Q2 earnings results that included an increase in 2026 full-year guidance. The company is also leaning into the artificial intelligence boom by building on its OnStar brand to implement in-car AI.
Tesla is more like a high-growth tech stock than an automotive equity. Its Q2 revenue represented a 26% year-over-year jump despite the end of federal EV tax credits in September of 2025. The company is looking to expand sales further as it moves into a self-driving vehicle business.
Tesla is an attractive choice for investors looking for a high-growth stock. General Motors pays a modest dividend yielding 0.83%, so it is a more compelling stock for income-oriented investors.
Should you buy stock in General Motors right now?
Before you buy stock in General Motors, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Motors wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 31, 2026.
Robert Izquierdo has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

General Motors vs. Tesla: Comparing Revenue Growth Trajectories Between These Automotive Giants

General Motors’ GM latest agreement with Unifor strengthens its commitment to Canadian manufacturing, with more than C$1 billion in investments tied to the company’s Ontario operations. The three-year contracts, covering more than 4,600 workers, were approved by union members. The deal follows a similar agreement Unifor reached with Ford F in July, including 3% annual wage increases and improvements in benefits and job security.
For GM, however, the biggest takeaway for investors is the production visibility the deal provides. General Motors will spend C$144 million to bring next-generation Heavy-Duty GMC Sierra production to Oshawa and C$215 million to assemble a next-generation transmission at St. Catharines, with work expected to begin in late 2029. The agreement also incorporates GM’s previously announced C$691 million investment in next-generation V-8 engine production and C$63 million for additional Oshawa upgrades.
The deal is notable given the uncertainty surrounding U.S.-Canada trade. GM has also agreed not to sell or close its idled CAMI Assembly plant in Ingersoll during the contract period and will pursue measures to mitigate potential layoffs at Oshawa.
Overall, the agreement gives GM greater visibility into future production of trucks, engines and transmissions while reinforcing its Canadian manufacturing base. But is this enough to make GM stock a buy now? Let’s take a closer look.
Factors Supporting GM’s Prospects
GM’s biggest strength remains its North American truck and SUV business, where the company has maintained pricing discipline rather than relying on heavy discounts to drive sales. Incentives have stayed below the industry average for more than three years, helping protect profitability. This strategy is showing results, with GM North America’s adjusted EBIT margin recovering to 8.6% in the second quarter and 9.3% in the first half, putting the business back within management’s 8%-10% target range.
The launch of next-generation Chevrolet Silverado and GMC Sierra models, higher full-size SUV capacity and greater U.S. production could support revenue and margins in 2027. Management has raised its 2026 adjusted EPS guidance to $12-$14 and expects 2027 results to exceed 2026.
General Motors is also making progress in China, where restructuring and cost reductions helped first-half equity income more than double to $248 million from $116 million a year earlier. At the same time, OnStar and Super Cruise are expanding GM’s recurring-revenue base, with more than $3 billion of recognized and deferred revenues expected in 2026. GM expects to add about 1 million subscribers and surpass 850,000 Super Cruise subscribers by year-end. GM Energy, GM Defense and GM Insurance offer additional growth avenues.
Strong cash generation further supports shareholder returns. GM has repurchased $2.8 billion of stock so far this year, with another $3.5 billion remaining under its authorization.
Cost Pressures Cloud the Near-Term Outlook
GM nevertheless faces several headwinds that could weigh on profitability. Commodity and logistics inflation is expected to cost the company $1.2-$1.7 billion in 2026, while gross tariff exposure remains estimated at $2.5-$3.5 billion. Although lower gross costs and potential IEEPA refunds could offset part of the impact, GM also expects higher onshoring expenses as it shifts more production to the United States. Near-term results are likely to reflect these pressures.
Management also expects fourth-quarter performance to be weaker than normal seasonal trends because of higher launch-related costs and an anticipated year-over-year production headwind of roughly 35,000 units during the transition. The transfer of Escalade production to the Orion Assembly plant is also expected to create its largest onshoring impact in the fourth quarter.
Thus, GM enters the coming period with a resilient core business and several growth opportunities, but elevated costs and production-transition pressures could temper earnings momentum in the near term.
The Zacks Rundown on General Motors
Over the last six months, GM stock has risen 11%, outpacing the industry’s decline. The stock also outperformed its closest peers, Ford and Stellantis STLA. Over the same timeframe, shares of Ford gained roughly 4%, while Stellantis shares declined 29%.
6-Month Price Performance Comparison
The stock is trading at 6.05X forward earnings, lower than Ford’s 7.27X and Stellantis’ 6.66X. GM has a Value Score of A.
General Motors’ P/E F12M Vs. F and STLA
The Zacks Consensus Estimate for GM’s 2026 and 2027 EPS implies year-over-year growth of 25% and 11%, respectively. The consensus mark for 2026 and 2027 EPS has moved up over the past 60 days.
Image Source: Zacks Investment Research
Our Take
GM’s fundamentals are improving, but the stock does not yet offer a strong enough risk-reward profile to justify a clear “Buy” call. Its disciplined North American operations, product investments, recurring-revenue opportunities and shareholder returns provide a solid foundation for longer-term growth.
However, tariff uncertainty, rising costs and production-transition pressures could limit earnings momentum in the near term. With management already expecting a softer fourth quarter, investors may be better served waiting for greater clarity on margins and cost pressures.
Thus, GM stock is not an attractive investment option now. But existing investors should retain the stock for the long haul. GM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stellantis N.V. (STLA) : Free Stock Analysis Report

Is General Motors a Buy After Its C$1B+ Canadian Investment Pledge?

MP Materials MP and NioCorp Developments Ltd. NB are two US-based companies expected to play key roles in establishing domestic critical-mineral supply chains and reducing dependence on foreign sources.
Las Vegas-based MP Materials is an established rare earth producer with integrated mining, processing and magnet manufacturing operations. It currently has a market capitalization of approximately $10 billion. Colorado-based NioCorp, in contrast, is a development-stage company advancing its Elk Creek Critical Minerals Project in Nebraska, with a market capitalization of roughly $600 million.
The key question is which stock to bet on, MP or NB. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for MP Materials
MP Materials owns and operates the Mountain Pass mine in California, the only large-scale rare earth mining and processing facility in North America. It also owns the Independence facility in Fort Worth, TX, where it manufactures magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
MP continues to scale production and downstream manufacturing capabilities. Neodymium-praseodymium (NdPr) production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP Materials remains on track to begin producing terbium and dysprosium later this year, while first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company GM for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP reported an 89% year-over-year increase in second-quarter 2026 revenues to $108.5 million. The company also recorded $17.58 million in income tied to a price protection agreement (PPA) with the Department of War (DoW). Cost of sales, however, increased 43.3% year over year, and selling, general and administrative expenses rose 28.2%. Start-up costs surged to $14.4 million from $0.76 million in the year-ago quarter as MP advanced initial magnet production.
The company reported an operating loss of $32 million, narrower than the loss of $43.9 million in the year-ago quarter. MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple on magnet recycling, magnet production and joint development also continues to advance.
Meanwhile, construction of the 10X facility remains on track. The second U.S. rare earth magnet facility is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually. Combined with the 3,000-metric-ton capacity of the Independence facility, MP’s U.S. magnet capacity is expected to reach 10,000 metric tons annually.
The Case for NioCorp
NioCorp’s primary focus is advancing the Elk Creek Critical Minerals Project toward commercial production. The company recently released an updated 2026 Feasibility Study for the Elk Creek project. The project is expected to produce eight products compared with three earlier. This includes ferroniobium, scandium trioxide, titanium tetrachloride and several rare earth oxide products, including NdPr, dysprosium oxide and terbium oxide, samarium-europium-gadolinium carbonate and heavy rare earth carbonate. The expanded product mix is expected to provide a more diversified revenue base and reduce dependence on any single commodity.
Over the projected 40-year mine life, the Elk Creek Project is projected to generate approximately $37.4 billion in life-of-mine revenues, average annual EBITDA of $608 million and average annual operating cash flow of $519 million. The study estimates an upfront capital requirement of approximately $1.85 billion.
NioCorp, being still in the development stage, has yet to generate revenues from mining operations. The company continues to incur operating expenses primarily related to costs incurred for the advancement of the Elk Creek Project and the activities necessary to support corporate and shareholder duties, resulting in losses.
In February 2026, NB commenced construction of the main underground portal for its Elk Creek Project, marking a shift from planning to pre-construction. NioCorp has raised more than $500 million since January 2025, has received a $10 million Pentagon Title III award and is under consideration by the U.S. Export-Import (EXIM) Bank for debt financing of up to 65% of the project’s capex costs. Notably, the completion of the 2026 Feasibility Study will satisfy a key EXIM Bank due diligence requirement.
On the commercial front, NioCorp has signed non-binding agreements aimed at establishing future markets for its planned output. These include a memorandum of understanding with Lockheed Martin Corporation LMT and a non-binding term sheet with Traxys to market and sell minerals from the Elk Creek Project.
These developments improve the project's strategic positioning, particularly as the United States seeks to reduce dependence on imported critical minerals. However, investors should note that Elk Creek remains a development-stage project, and its projected economics and production timelines are subject to financing, construction execution, commodity prices and other risks.
How do Estimates Compare for MP & NB?
The Zacks Consensus Estimate for MP Materials’ fiscal 2026 earnings is pegged at eight cents per share, indicating a turnaround performance from the loss of 24 cents in 2025. The estimate for MP Materials’ 2027 earnings is pegged at 88 cents per share, implying 1,009% year-over-year growth.
The Zacks Consensus Estimate for NioCorp’s fiscal 2026 earnings is pegged at a loss of 46 cents per share, wider than the loss of 35 cents in fiscal 2025. The fiscal 2027 estimate is at a loss of 32 cents per share.
Both estimates for MP Materials’ 2026 and 2027 have been revised downward over the past 60 days. Estimates for NioCorp’s fiscal 2026 have moved up in the past 60 days, while the estimates for fiscal 2027 have moved down. This is shown in the chart below.
MP vs. NB: Price Performance & Valuation
Over the past year, MP Materials stock has declined 21.1% compared with NioCorp’s 10.2% fall.
MP Materials is currently trading at a price-to-book ratio of 5.11, while NioCorp is trading at a lower 1.38.
MP Materials or NioCorp: Which Stock is the Better Buy?
Both MP Materials and NioCorp stand to benefit from growing U.S. efforts to establish secure domestic supply chains for rare earths and other critical minerals.
MP Materials currently has a clear advantage in terms of operational maturity. Its integrated Mountain Pass operations, growing rare earth production, expanding magnet manufacturing capacity and strategic partnerships with customers and the U.S. government provide tangible growth opportunities. However, substantial investments in downstream expansion and production ramp-ups could continue to pressure near-term profitability.
NioCorp offers exposure to a broader portfolio of critical minerals and has made progress in advancing the Elk Creek Project. The updated feasibility study points to potentially attractive long-term economics, while government support and commercial discussions could strengthen the project's strategic importance. Nevertheless, the company faces significant execution and financing risks as it works to transition from development into construction and commercial production.
Given the downward revisions to earnings estimates and the risks associated with their respective expansion plans, investors may prefer to wait for improved earnings visibility and clearer execution milestones before taking positions. Both MP and NB currently carry a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	GM	Industry	GM	Industry	Volume, $
Yesterday 85.3 - 87.8	-0.72	6.23	2.94	1.23	495.20M
Week 82.9 - 87.9	0.25	5.22	1.50	3.35	2.03B
Month 82.9 - 88.4	-0.26	10.03	6.54	8.31	6.53B
3 Months 74.2 - 91.9	6.00	5.70	19.44	11.69	23.36B
6 Months 70.4 - 91.9	17.71	8.06	25.21	18.78	46.63B
Year 54.3 - 91.9	44.73	16.65	33.95	29.84	104.66B
3 years 26.3 - 91.9	155.22	48.74	59.04	59.78	308.57B
5 years 26.3 - 91.9	72.86	63.09	81.42	88.23	560.57B
All time 14.3 - 67.2	55.03	396.53	—	—	614.74B

General Motors Company

Price and volatility history

Risk ratios