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1 Cheap Auto Stock to Buy and Never Sell

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The automobile industry is witnessing its worst time in more than a decade. However, despite several headwinds, General Motors’ (GM) sales rose last year. The company remains confident of achieving further growth this year and has bold long-term plans. Surprisingly, GM is trading at a discount to its peers. Therefore, it could be a solid value stock to buy now and hold forever. Read more….


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After being dislodged for the first time in ninety years by Toyota Motor Corporation (TM) in 2021, General Motors Company (GM) wrestled back the top spot in U.S. automobile sales in 2022. GM sold 2.27 million vehicles in 2022, compared to TM’s 2.11 million.

While TM’s sales dropped 9.6% in 2022, GM’s sales rose 2.5% despite high inflation, supply chain issues, and the Fed’s aggressive rate hikes. The Detroit-based automaker reported an increase of 41.4% year-over-year to 623,261 units in vehicle sales in the fourth quarter ended December 31, 2022.

GM’s rise in new vehicle sales last year came at a time when the auto industry’s new vehicle sales are expected to reach their lowest in more than a decade, with estimates ranging from 13.70 million to 13.90 million, marking a decline of 8% to 9% from the prior-year period.

The company’s first Ultium-dedicated assembly plant, Factory Zero in Detroit and Hamtramck, is slated to restart production this month, building the GMC Hummer EV SUV, which is expected to launch in mid-2023. Also, production of the Chevrolet Bolt EV and Bolt EUV will increase to more than 70,000 units this year to meet the strong global demand.

Moreover, the BrightDrop Zevo 600 production is underway at CAMI, and Zevo 400 manufacturing is slated to begin later this year. Regarding ICE vehicles, GM’s new Chevrolet Colorado and GMC Canyon pickup production is expected to start early this year. Also, Chevrolet and GMC are set to launch the 2024 Silverado HD and Sierra HD in Q1.

GM’s executive vice president and president of GM North America, Steve Carlisle, said, “GM is carrying strong momentum in North America into 2023. We see opportunities to grow our EV market share with nine all-electric models on sale, expand our truck leadership with four new Chevrolet and GMC heavy-duty and midsize pickups, and win new customers with the affordable and stylish 2024 Chevrolet Trax, which is the best entry-level vehicle we’ve ever built.”

GM is trading at a discount to its peers. In terms of forward non-GAAP P/E, GM’s 5.19x is 62.7% lower than the 13.91x industry average. Its forward EV/EBIT of 10.51x is 20.5% lower than the 13.23x industry average. Also, the stock’s 5.68x forward EV/EBITDA is 40.8% lower than the 9.59x industry average.

GM has set some bold long-term targets where total revenue is expected to grow at a 12% CAGR through 2025, reaching more than $225 billion. Revenue from EVs is expected to be more than $50 billion in 2025.

GM has plans to build one million EVs in North America by 2025 and to stop selling gasoline-powered vehicles by 2035. GM’s EV plans got a boost after the U.S. Energy Department finalized a $2.50 billion low-cost loan to a joint venture of GM and LG Energy Solution to pay for three lithium-ion battery cell manufacturing facilities.

Wall Street analysts are bullish on GM. The stock is expected to reach $43 in the next 12 months, indicating a potential upside of 15.9%. The stock has gained 14.9% in price over the past three months to close the last trading session at $37.11.

Here’s what could influence GM’s performance in the upcoming months:

Favorable Recent Developments

On November 17, 2022, GM and Vale Canada Limited, a subsidiary of Vale S.A. (VALE), signed an agreement for the long-term supply of battery-grade nickel sulfate to enhance North American EV supply chains. This deal is expected to help GM reach its target of building 1 million EVs annually in North America in 2025.

In addition, on November 16, 2022, GM and Nel Hydrogen U.S. entered a joint development agreement. This agreement will merge GM’s fuel cell expertise and NEL’s deep knowledge of electrolyzers, forming cost-efficient renewable hydrogen sources.

Robust Financials

GM’s total net sales and revenue increased 56.4% year-over-year to $41.89 billion for the third quarter ended September 30, 2022. Its adjusted net earnings increased 47.5% year-over-year to $3.28 billion. In addition, its adjusted EPS came in at $2.25, representing an increase of 48% year-over-year.

Favorable Analyst Estimates

GM’s EPS and revenue for the quarter ended December 31, 2022, are expected to increase 23.9% and 21.2% year-over-year to $1.67 and $40.71 billion, respectively. Its EPS for fiscal 2022 is expected to increase 1.1% year-over-year to $7.15.

In addition, its revenue for fiscal 2022 and 2023 is expected to increase 21.4% and 3.3% year-over-year to $154.19 billion and $159.28 billion, respectively.

Mixed Profitability

In terms of the trailing-12-month net income margin, GM’s 6.57% is 26.9% higher than the 5.18% industry average. Likewise, its 12.24% trailing-12-month EBITDA margin is 10.3% higher than the industry average of 11.09%. Furthermore, the stock’s 10.94% trailing-12-month Capex/Sales is 256.4% higher than the industry average of 3.07%.

On the other hand, GM’s trailing-12-month gross profit margin of 13.56% is 61.9% lower than the 35.58% industry average. Likewise, the stock’s 0.59% trailing-12-month asset turnover ratio is 41.7% lower than the industry average of 1.01%.

POWR Ratings Show Promise

GM has an overall rating of B, equating to a Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. GM has an A grade for Growth, consistent with its robust financials.

It has a B grade for Value, in sync with its discounted valuation. Also, favorable analyst estimates substantiate its B grade for Sentiment.

GM is ranked #17 out of 63 stocks in the Auto & Vehicle Manufacturers industry. Click here to access GM’s Momentum, Stability, and Quality ratings.

Bottom Line

After reclaiming the top spot from Toyota, GM expects to maintain the strong momentum this year with its new launches and rise in EV and ICE vehicle production to meet the high demand.

GM is trading at a discount to its peers. With industry analysts expecting higher new vehicle sales in 2023, GM is expected to perform strongly due to its strong product pipeline. Moreover, the company has set bold long-term targets, with plans to roll out one million EVs by 2025 in North America.

Given its robust financials, discounted valuation, and favorable analyst estimates, it could be wise to buy the stock now.

How Does General Motors Company (GM) Stack up Against Its Peers?

GM has an overall POWR Rating of B, equating to a Buy rating. Check out these other stocks within the Auto & Vehicle Manufacturers industry with an A (Strong Buy) or B (Buy) rating: Isuzu Motors Limited (ISUZY), Honda Motor Co., Ltd. (HMC), and Volkswagen AG (VWAGY).


GM shares fell $37.11 (-100.00%) in premarket trading Wednesday. Year-to-date, GM has gained 11.09%, versus a 2.39% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.

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The post 1 Cheap Auto Stock to Buy and Never Sell appeared first on StockNews.com

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Entrepreneurship

5 Ways to Become a Better Public Speaker This Year

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Opinions expressed by Entrepreneur contributors are their own.

The ability to speak publicly is a skill that everyone can use. From coaches to entrepreneurs and writers, anyone who wants to get out into the world to market what they do needs to be an effective speaker.

This article will discuss five ways to become a better public speaker — five methods for sharpening your raw talents to morph into a more effective communicator overall.

Related: This Is the One Thing You Need If You Want to Get Paid Speaking Gigs

1. Practice in different environments

This tip comes from an exercise that musicians sometimes use while practicing.

The idea is to see if you can replicate your performance no matter where you are. As a speaker, you will encounter all kinds of scenarios and audiences. You have surely had distractions around you, being in front of people with different interests, being under different lighting and noise conditions and more.

Practicing speaking in different environments will force you to get comfortable performing under all circumstances. Without the crutch of your favorite environment, you have to remember your lines and recall cues completely on your own.

Related: 4 Expert-Backed Strategies for Improving Your Communication Skills

2. Produce different kinds of ‘speaking’ content

Another tip for becoming a more well-rounded speaker is to produce a variety of speaking content. Speakers don’t always have to stand on a stage and talk to live audiences.

I create speaking content across many channels — from my website and blog to YouTube and my podcast series. I distribute audio and video recordings of my speeches to my clients and promote them on my social channels. I go live on Facebook and other platforms to speak directly to my audiences that way. You can do the same.

This variety isn’t by accident. Producing these different types of content in the digital space allows individuals to sharpen their speaking skills and reach larger audiences than they could in person.

3. Get active on audio platforms

Here’s a speaking tip that doesn’t involve performing as much as learning from what others are already doing: Get active on professional audio platforms such as Clubhouse and Twitter Spaces to meet with like-minded individuals and discuss relevant topics.

Doing this lets you compare notes with industry counterparts while working on your speaking skills. You will endeavor to communicate with other business leaders and coaches from around the world and all different walks of life.

Related: The Role of Effective Communication in Entrepreneurial Success

4. Take every opportunity to speak

Speak to a group at every available opportunity. I used to wonder how I could speak to an audience when the professional invitations dried up for a bit, and the answer was local service groups.

Toastmasters International, Rotary International, Lions Clubs International and the Freemasons are all great examples of the types of organizations that not only perform good works for their local communities but also welcome speakers and presenters to deliver valuable information to their members.

I find chapters of these groups in many cities and towns that I visit. Having these groups near me allows me to cut down on my travel time and simply makes it more convenient to continue practicing speaking skills while also putting my abilities to good use for my community.

Not only will this help you with your skills at public speaking, but it’s a rewarding experience as well.

5. Work with a speaking coach

Finally, every speaker-in-training could benefit from working with a speaking coach or mentor. These professionals provide their clients with professional tips and feedback on everything from the words they’re using to how they’re delivering them to audiences.

Some speakers wonder why they can’t just rely on their friends and families to provide them with honest feedback, and there are some good reasons for not doing that. Family and friends are kind, but that’s exactly the problem. Speakers need the unrelenting honesty of professional coaches if they truly want to leave their bad habits behind and become stronger.

I hired a professional speaking coach to improve my skills, and I can attest that it pays dividends every single day in my career.

Related: Leading Speaking Coach Shares His Strategies To Get A Flood Of Clients From Webinars And Virtual Presentations

Communication is everything to professionals

Whether it’s in the world of business, non-profits or coaching, speaking effectively is vital to success. Communication means everything to professionals, and those who can’t tell others what they do and what they’re about can’t expect to get their visions too far off the ground.

I followed these five actionable tips for becoming a better speaker, and I came out on the other side as a communicator that I never even thought possible. You will do the same.

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26% of U.S. Workers Would Rather Undergo a Root Canal Than Follow This Workplace Policy

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Opinions expressed by Entrepreneur contributors are their own.

According to a recent survey conducted by job site Monster, more than one in four (26%) U.S. workers would rather undergo a root canal procedure than work in their offices five days a week. Additionally, nearly two in five (38%) workers said they would quit a job that required just one day onsite. These staggering statistics reveal a clear shift in workers’ attitudes towards the traditional office environment, and companies that fail to adapt to this change risk losing their most valuable asset: their employees.

As a highly experienced expert in the field of hybrid work, I talk with 5 to 10 leaders every week about how to make hybrid work serve their needs well. I ask them what their top concern is, and most say it’s hiring and retaining talented staff.

External surveys say the same thing, such as this recent survey by Vistage of the leaders of small and medium-sized businesses. It found that 60% of SME CEOs are planning to increase headcount in the year ahead, with only 7% planning on reducing headcount. According to Vistage Chief Research Officer Joe Galvin, this is a significant shift from the trend of big companies making headlines with layoffs, as small and medium business CEOs are reluctant to lay off their hard-won new employees. One key reason for this shift is the recognition that hiring challenges are impacting the ability of these businesses to operate at full capacity. With 61% of CEOs saying that hiring challenges are a major concern for their ability to operate effectively at full capacity.

Given this information, I confidently tell the leaders whom I advise that the future of work is in a flexible hybrid work model that allows for some full-time remote work. This model not only keeps workers happy and engaged, but it also has a positive impact on a company’s bottom line.

Related: You Should Let Your Team Decide Their Approach to Hybrid Work. A Behavioral Economist Explains Why and How You Should Do It.

Increased productivity and employee engagement

One of the most significant benefits of a flexible hybrid work model is increased productivity and employee engagement. Studies have shown that remote workers tend to work more efficiently and are less likely to experience burnout. A mid-size IT services company that I consulted for implemented a flexible working policy, and they saw a 20% increase in productivity among their remote workers.

Remote workers have the ability to create their own personalized work environment, which leads to an increase in productivity. They can work from a location that is most comfortable for them, whether that be their home, a coffee shop or a coworking space. This leads to a decrease in distractions and an increase in focus, resulting in a higher level of productivity.

Flexible working also has a positive impact on employee engagement. When employees have the ability to work in a way that suits them best, they are more likely to be engaged and motivated. This leads to a decrease in turnover, and an increase in employee loyalty and job satisfaction.

Access to a wider talent pool

A flexible hybrid work model also allows companies to tap into a wider talent pool. When companies are not limited by geographical location, they can attract and retain the best talent from all over the world. A large financial services company that I worked with had difficulty finding qualified candidates in their local area, but by implementing a flexible working policy, they were able to hire top talent from other parts of the country.

A flexible working policy also allows for a more diverse workforce, as it can attract candidates who may have previously been excluded due to geographical constraints. This diversity leads to new perspectives, ideas and innovation.

Cost savings on talent

Flexible working can also lead to significant cost savings for companies. A flexible hybrid work model reduces the need for office space, and it can also lead to a reduction in absenteeism and turnover. A retail company that I consulted for implemented a flexible working policy, and they saw a 30% reduction in absenteeism due to less workers taking sick days and a 20% reduction in turnover.

When employees have the ability to work from home, it leads to a reduction in absenteeism as they are less likely to be affected by things such as traffic, weather, or public transportation issues. This can also lead to a decrease in sick leave, and an increase in overall productivity.

Flexible working can also lead to a reduction in turnover, as employees are more likely to be satisfied and engaged in their work. This leads to a decrease in the cost of recruiting and training new employees.

Addressing cognitive biases

Cognitive biases can play a significant role in decision-making when it comes to flexible working. The status quo bias, for example, leads managers to resist change and stick to the traditional office environment. The sunk cost fallacy can also come into play, where managers may be reluctant to change the way things have always been done because they have invested so much time and resources into the current system. By being aware of these cognitive biases and actively working to overcome them, companies can make more informed and effective decisions about their working policies.

One way to overcome these biases is to gather data and conduct studies on the impact of flexible working on employee productivity, engagement, and turnover. This can provide concrete evidence to support the implementation of a flexible hybrid work model. Additionally, it is important for managers to actively seek out feedback from employees on their preferences for working arrangements and to consider their needs and concerns.

Implementing a flexible hybrid work model

Implementing a flexible hybrid work model can seem daunting, but with proper planning and communication, it can be done successfully. It is important to set clear guidelines and expectations for remote work, such as setting specific hours of availability and ensuring regular communication with team members.

It is also important to provide the necessary tools and resources for remote work, such as a reliable internet connection and a secure virtual communication platform. Providing training on hybrid work best practices and technology can also help to ensure a smooth transition, as can hiring a hybrid work consultant to guide your transition.

Related: Salesforce CEO Marc Benioff Is Right. New Employees Are Less Productive in a Hybrid Work Setting — But Why?

Conclusion

The shift in workers’ attitudes toward the traditional office environment is undeniable. Companies that fail to adapt to this change risk losing their most valuable asset: their employees. A flexible hybrid work model that allows for some full-time remote work is the future for anyone who cares about worker retention, increased productivity, access to a wider talent pool, cost savings, and overcoming cognitive biases. The time for companies to implement this model is now. As a leader of a company, it’s important to recognize that the traditional office model may no longer be the best option for your employees or your business. By embracing a flexible hybrid work model, you can retain top talent, increase productivity and save costs. The future of work is here, and companies that adapt will be well-positioned for success.

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Google Worker Laid Off While On Leave Caring For Sick Mom

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One person who was laid off from Google in the company’s wave of staff cuts last week says he was on a leave from work taking care of his mother who is terminally ill with cancer.


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Google offices in New York City.

Paul Baker was on leave for about a month when he received an email letting him know the company was laying him off, along with around 12,000 others, he told Insider.

“While on carer’s leave for my immediate family member’s terminal cancer, I too was laid off. After the initial shock, it morphed into sadness because I miss the people,” he also wrote on LinkedIn.

Related: More Than 1,600 Tech Workers Are Being Laid Off A Day On Average In 2023, According to a New Report

On Jan. 20, Google’s CEO Sundar Pichai sent a note to employees taking responsibility for hiring “for a different economic reality than the one we face today.”

Baker told Insider that he was on leave and was told by a friend about the layoffs, then found his work laptop had been “cut off,” the outlet wrote.

He was a video producer at Google, according to his LinkedIn, and had been at the company since 2018. Baker told Insider he was feeling “shock and sadness.” The outlet said it verified the leave period as well as his severance email and prior employment with Google.

Related: In a Viral TikTok, An Ex-YouTube Employee Talks About Getting Laid Off During a Business Trip

“I’ll truly miss it,” he said.

Baker also told the outlet he has not received information about how his severance package would be affected by the fact that he was on career leave to care for his mom.

Pichai said in the memo the company will provide “six months of healthcare, job placement services and immigration support for those affected.”

Still, he told Insider he would love to go back to the company.

“If there’s ever a Google position open for another video producer position, I would take it in a heartbeat,” he said.

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