#6: General Motors
This gigantic ship saw a decent, if not stellar, year-over-year gain in U.S. auto sales of 4.3% through the first six months of 2012. General Motors (NYSE:GM) has sold 1,315,713 total vehicles in the country from January through June, but that hasn’t prompted auto stock buyers to climb into the driver’s seat. GM shares were down 4.3% through the first half of the year, and the selling is largely due to fears that a global recession will put more pressure on sales, revenue and earnings in the second half of the year.
The virtually stalled performance of GM shares comes despite some very strong gains in its June sales in the all-important China auto market. The company reported record June China sales that climbed 10% from a year ago. GM also had record sales in the country for the first six months of 2012, with nearly 1.42 million vehicles sold — that’s 11% better than a year ago.
But despite the sound sales metrics, GM stock trades near its 52-week low, and the shares are trading below both the short-term, 50-day moving average, as well as the long-term, 200-day moving average. Traders and investors should let this stock’s engine warm up before taking it out for a spin.