10 Stocks on Jim Cramer’s Radar These Days

4. General Motors Co (NYSE:GM)

Number of Hedge Funds Investors: 64

Jim Cramer in a latest program said that General Motors Co (NYSE:GM) was a cheap stock based on its PE ratio but given the potential impact of the new tariffs, the stock could be a “value trap.”

“Their future earnings are in grave danger. Turns out Ford and GM could be ridiculous value traps. While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda, along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies.”

Hotchkis & Wiley Large Cap Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:

“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”