10 Best Consumer Cyclical Stocks To Buy Now

5. General Motors Company (NYSE:GM)

Number of Hedge Fund Investors In Q1 2024: 78

General Motors Company (NYSE:GM) is one of the largest traditional automakers in the US. This means that the firm has had to keep up with the times, since the rise of Tesla to the forefront of the industry has permanently altered its dynamics. General Motors Company (NYSE:GM) can no longer rely on its sizeable market share and brand image in a world where customers make the shift to electric vehicles and assisted driving technologies remove some of the fatigue involved with daily driving. However, General Motors Company (NYSE:GM) is still a sizeable company and its $26.6 billion in cash means that the firm has plenty of room to pursue high growth initiatives. This was evidenced by General Motors Company (NYSE:GM)’s decision in June to pump another $850 million in its Cruise self driving business, which remains beset with crashes that have rattled industry watchers. While it is also struggling in the EV industry and now plans to produce a high end of 250,000 EVs in 2024 (down from an earlier 300,000), General Motors Company (NYSE:GM)’s solid balance sheet allows it to accelerate share buybacks and keep investors happy as it finds its footing in the car industry of the modern era. Not to mention, its sizeable presence in the internal combustion car industry provides General Motors Company (NYSE:GM) with room to keep finances steady even if the EV sector is struggling.

Diamond Hill Capital mentioned General Motors Company (NYSE:GM) in its Q1 2024 investor letter. Here is what the firm said:

Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well- positioned relative to secular tailwinds within the automobile business.