10 Best Automotive Stocks To Buy Now

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 72

General Motors Company (NYSE:GM) is a provider of trucks, crossovers, cars, and automobile parts. It is a well-known automotive company that is based in Detroit, Michigan.

General Motors Company (NYSE:GM) is a great automotive play for several reasons. First, the stock is among the most underrated options in the EV market because most investors still consider it to be a traditional automotive company. General Motors Company (NYSE:GM) is actually developing an EV strategy, the progress of which has been impressive, to say the least. Some of the EV products it’s offering include the Hummer EV, Chevy Silverado EV, and Cadillac Lyric SUV. In the second quarter alone, General Motors Company (NYSE:GM) delivered 22,000 EVs, which represents a growth of 40% year-over-year and provided the company with a market share of 2.2% higher than it was a year ago.

A second reason for investing in General Motors Company (NYSE:GM) today is that the stock is incredibly cheap. The stock has a P/E ratio of 5.01, which is well below the sector median of 15.9. The main reason behind the stock’s cheap valuation is its massive profitability. If we look at the second quarter, General Motors Company (NYSE:GM) produced about $5.3 billion in free cash flow, which represents the best figure reported by the company since 2020 – and it managed to rake in this much money while maintaining pricing power above the industry average. All in all, General Motors Company (NYSE:GM) is an exceptional automotive stock to invest in right now.

A total of 72 hedge funds were long General Motors Company (NYSE:GM) in the second quarter, with a total stake value of $4.1 billion.