6. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is a leading global automotive manufacturer engaged in the design, construction, and sale of trucks, crossovers, cars, and automobile parts. In addition to its core vehicle offerings, the company provides software-enabled services and subscription options. Vehicles are marketed under several well-known brands, including Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling. The company distributes its products through a network of retail dealers and distributors, catering to both individual consumers and fleet customers.
Talking about several key points related to the stock, Cramer said:
“Hey, you know what tempting is? General Motors. They hold an analyst meeting [on] Tuesday. GM’s having a great year. [The] stock’s up 27%. I think the redoubtable CEO Mary Barra will tell a strong story.”
Recently, General Motors (NYSE:GM) released its third-quarter sales figures for the U.S. market, which highlighted a 3% increase in retail sales compared to the previous year, resulting in a total of 659,601 vehicles delivered.
The quarter also marked a significant achievement in electric vehicle sales, with 32,095 EVs sold, representing a remarkable 60% year-over-year growth and a 46% increase from the second quarter of 2024.
Cramer went on to say:
“The company’s been able to put up quality numbers even when interest rates were higher. So who knows how well it can do now that the Fed’s our friend. Holy cow. Hey, by the way, unlike Ford, GM has a substantial buyback, which has clearly helped in stock. By contrast, Ford stock’s down 13% for the year. Given that GM still trades at less than five times earnings, and as long as Barra doesn’t cut the forecast, I think the stock can only go higher.”
With the positive momentum observed in sales and management’s optimistic outlook for the remainder of the year, General Motors (NYSE:GM) raised its guidance for full-year 2024. The company forecasts adjusted EBIT in the range of $13 billion to $15 billion, adjusted diluted earnings per share between $9.50 and $10.50, and adjusted automotive free cash flow projected to be between $9.5 billion and $11.5 billion.
Management commented that the increase in cash flow guidance surpasses the growth in EBIT, which is largely because of aligning production with market demand and expected benefits from working capital management over the upcoming months.
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.”
