10 Best Autonomous Driving Stocks To Buy According to Hedge Funds

5. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 64

General Motors Company (NYSE:GM), a legacy automaker with iconic brands like Chevrolet, GMC, and Cadillac, has long been a cornerstone of the automotive industry. While these brands are not traditionally considered high-growth ventures, GM has embraced innovation through its 2016 acquisition of Cruise, a leader in self-driving technology. Cruise currently operates a limited fleet of driverless robotaxis and last-mile delivery vehicles in select cities. GM plans to integrate some of Cruise’s advanced technology into consumer vehicles within the next few years.

In its Q3 earnings report released on October 22, General Motors Company (NYSE:GM) exceeded Wall Street’s expectations, prompting the company to revise its 2024 guidance upward. The automaker reported adjusted earnings per share of $2.96, surpassing the consensus estimate of $2.43, alongside revenue of $48.76 billion, beating the anticipated $44.59 billion. GM now forecasts full-year adjusted EBIT between $14 billion and $15 billion, an increase from prior estimates of $13 billion to $15 billion. Additionally, its automotive free cash flow guidance was raised to $12.5 billion–$13.5 billion, up from $9.5 billion–$11.5 billion.

On December 4, BofA Securities reaffirmed its Buy rating for GM with a price target of $85. The firm highlighted GM’s robust annual revenue of $182.72 billion and an appealing P/E ratio of 5.78. BofA anticipates that the strength of GM’s core North American business will continue to support earnings and cash flow. Furthermore, GM’s investments in electric vehicles, hybrid and fuel cell powertrains, and advancements in autonomous vehicle technology are expected to drive long-term growth beyond 2024.

Diamond Hill Capital stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:

“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”