Common Stock Overview

Rated as an overall Buy by the Street, General Motors (NYSE:GM) stock offers investors solid opportunity for growth and return. The stock has an excellent forward P/E of 5.1. The dividend yield is a solid 4.66 percent, and it exceeded expected earnings for the 4th quarter. Prospects for 2016 and beyond are bright.

Recalls and Compensation Managed Effectively

The inherent risks of auto manufacture include defects and injuries; the 2014 costs include victim compensation fund claims and a significant number of recalls. The total of five million vehicles under recall was significant and increased by the latest round of 200,000 vehicles due to Takata airbag defects. Managing the risks, GM fourth quarter earnings were strong at $1.39 against expected earnings of about $1.21.

A Timely LYFT

GM has joined a consortium to invest in new technology for ride-hailing services. Uber and other successful models offer consumers an alternative to car ownership by having driver operated or robotic vehicles come to the customer’s door. Lyft driver-less operations technology will develop a marketing model for the evolving and important vehicle sharing markets.

GM Versus Peers

Morningstar peer rating shows GM and Volkswagen (OTCPK:VLKAY) as the top rated companies in the industry. The giant Toyota (NYSE:TM) has advantages in size and volume; however, GM rates for efficiency, fundamentals, and management effectiveness. GM has its base in North America; the US and Canadian economies are generally models of stability and positive growth as compared with global markets.

GM vehicles still compete well in every part of the global market. Their flagship truck and SUV models meet or exceed their competition in Europe, Asia, and South America. They have a global niche as a manufacturer of high-performance light trucks. The luxury lines of Cadillac models compete with leading products from Porsche and Daimler-Benz in Europe and Asia.