5 Most Undervalued Large Cap Stocks To Buy According To Hedge Funds

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 74

P/E Ratio as of January 24: 6.19

General Motors Company (NYSE:GM) is a Michigan-based company that designs, manufactures, and sells trucks, crossovers, cars, and automobile parts in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. On January 4, General Motors Company (NYSE:GM) announced that it delivered 2.2 million vehicles in the United States in 2022, exceeding Toyota Motor Corporation (NYSE:TM). It is one of the most undervalued large cap stocks to invest in. 

On January 19, Deutsche Bank’s analyst Emmanuel Rosner maintained a Hold rating on General Motors Company (NYSE:GM) and reduced the price target on the shares from $35 to $33. He anticipates that the fourth quarter earnings and 2023 guidance for the US auto industry as a whole will be mixed, with a number of firms potentially falling short of quarterly consensus estimates, and most likely providing cautious guidance for 2023 due to ongoing challenges and uncertain macroeconomic conditions in the industry.

According to Insider Monkey’s Q3 data, 74 hedge funds were long General Motors Company (NYSE:GM), compared to 75 funds in the prior quarter. Harris Associates is a prominent stakeholder of the company, with 41.5 million shares worth $1.3 billion. 

Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its Q3 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us with an attractive entry point to a name we know well.”

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