On Wednesday, shares of General Motors GM are rallying, up almost 2% in afternoon trading after the automaker reported strong total February sales and easily outperformed expectations for the overall industry.
GM said that sales for the month of February grew 4.2% from the year-ago period to 237,388 units, which beat estimates of a 1% decline for the auto industry as a whole. Average transaction prices increased 1.7% to $34,900.
Sales of crossovers and sales, in addition to higher incentives on its pickup trucks, helped the automaker’s performance, despite a drop in sales of many car models. Three Chevrolet SUVs saw their best February ever: the Equinox, the Trax, and the Traverse.
Sales of its popular Chevy Silverado pickup truck grew 17% to 50,504, while sales of the GMC Sierra increased 16% to 17,618. The all-electric Chevy Bolt reported 925 units sold, which is a solid showing for a beginning electric vehicle model.
By brand, GM’s sales grew 3.4% for Chevy, 17.2% for GMC, but dropped 9.4% for Buick and 8.6% for Cadillac.
“Looking ahead, we will stay focused on strengthening our brands, growing retail sales and share, reducing daily rental deliveries and maintaining our operating discipline,” Kurt McNeil, U.S. vice president of sales said in a statement. "Our strong small business deliveries are a clear sign of growing confidence in the economy.”
Currently, GM is a #1 (Strong Buy) on the Zacks Rank, and year-to-date, the stock is up over 5.74%.
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