16 Most Undervalued Stocks to Buy Now

6) General Motors Company (NYSE:GM)

Forward P/E as of August 22: 4.78x

Number of Hedge Fund Holders: 72

Expected EPS Growth this Year: 30.5%

General Motors Company (NYSE:GM) designs, builds, and sells cars, trucks, crossovers, and automobile parts. It offers vehicle protection, parts, accessories, maintenance, satellite radio, and automotive financing services.

General Motors Company (NYSE:GM) focuses on capitalizing on the shift to electric vehicles. At the same time, the company is also maintaining its strength in the core gas-engine truck and SUV business. The company is well-placed relative to secular tailwinds in the automobile business. With Sierra joining the EV lineup of the company, General Motors Company (NYSE:GM)–owned GMC brand plans to become a leader in all-electric truck sales in the US.

Therefore, its aggressive pivot towards electric vehicles and autonomous driving technologies places it at the forefront of the rapidly evolving market. Its Ultium battery platform, which is a modular system underpinning the entire future EV lineup, supplements its commitment to innovation. The company plans to expand its manufacturing capabilities in a way that this business can produce 1 million EV units in 2025.

For FY 2024, General Motors Company (NYSE:GM) is expected to post net income attributable to stockholders of between $10.0 billion – $11.4 billion and EBIT-adjusted of between $13.0 billion – $15.0 billion. Automotive operating cash flow is expected to come in the range of $19.2 billion – $22.2 billion.

Analysts at Mizuho increased their price target on shares of General Motors Company (NYSE:GM) from $48.00 to $52.00, giving it a “Buy” rating on 24^th April. Diamond Hill Capital, an investment management company, released its first-quarter 2024 investor letter and mentioned General Motors Company (NYSE:GM). Here is what the fund said:

“Other top contributors included Allstate, Caterpillar and General Motors Company (NYSE:GM). 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.”