11 Best Feminist Stocks To Invest In

5. General Motors Company (NYSE:GM)

Number of Hedge Fund Shareholders In Q1 2024: 78

CEO: Mary T. Barra

General Motors Company (NYSE:GM) is one of the oldest and most iconic car manufacturers in America. Amidst a tumultuous couple of months which have seen General Motors Company (NYSE:GM) resume its autonomous driving efforts and settle disputes with unions for a battery manufacturing facility. Citi kept its Buy rating for the shares and a $96 share price target in June 2024. The two key reasons behind the sustained optimism even as General Motors Company (NYSE:GM) has struggled in the EV industry are Citi’s belief that the US auto industry is robust and the car maker’s $11 billion share buyback. Between Q2 2024 and 2025, Citi now expects $7.1 billion in share buybacks which is significantly higher than the earlier estimate of $6.3 billion in buybacks.

General Motors Company (NYSE:GM)’s forward price to earnings ratio is just 5.02, which is less than 4x the S&P 500’s reading. This shouldn’t fool you though. We remember David Einhorn pitching GM at an investment conference more than 10 years ago and telling investors that GM’s PE ratio is 8 and it is an extremely cheap stock. If GM’s true PE ratio was really 8 and the company was managed by talented individuals, they would have bought back enough shares to buy 1.5 GMs in 12 years. GM is still an “extremely” cheap company after 12 years and it underperformed the market S&P 500 Index during this period. GM’s market cap is around $50 billion, but it also has nearly $100 billion in net debt. It is a risky stock with a bankruptcy in its history. Unless General Motors’ management demonstrates a clear commitment to prioritizing shareholder interests over those of employees, we remain cautious about the GM stock.

Diamond Hill Capital mentioned the firm 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.