The United Auto Workers (UAW) strike is going into its fourth week, and despite talk of “momentum” and “best offer yet,” there doesn’t seem to be much in the way of progress toward stopping it. However, despite word of more walkouts to come, the Big Three automakers—Stellantis (NYSE:STLA), General Motors (NYSE:GM), and Ford (NYSE:F)—seem to be doing fairly well in Friday morning’s trading session.
A “stand-up” announcement is expected from UAW president Shawn Fain later on Friday, and right now, progress is vague at best. Currently, about 25,000 of the UAW’s workers are on strike across five different assembly plants, as well as a panoply of parts distribution operations. The graduated strike plan has allowed the UAW to better husband the contents of its strike fund while the automakers can actually continue producing, calling on salaried workers to step in.
The automakers have also taken steps to protect their operations. Layoffs have already taken place throughout the spectrum, with Ford alone shuttering 400 jobs at two plants just days ago. GM, meanwhile, turned to credit facilities to keep its operations running, landing a $6 billion line of credit that should keep its operations aloft for some time to come. With all sides negotiating pretty hard, by the look of things, it’s easy to think that a solution may not be too far off. That may be prompting some optimism from investors.
Which of the Big Three Automakers is a Good Buy Right Now?
The unquestioned leader in possible gains for the Big Three right now has to be GM, whose average price target of $49.13 gives it 60.56% upside potential despite it only being a Moderate Buy. Meanwhile, Stellantis, the only Strong Buy on the list, comes in last with 27.24% upside potential against its $24.29 average price target.
