7 Best Car Stocks To Invest In Now

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 72

General Motors Company (NYSE:GM) is a well-known automobile manufacturing company. It is based in Detroit, Michigan.

This stock has consistently been ranked as one of the cheapest automotive stocks in the market right now since it is trading at a P/E of 5.1 relative to the sector median of 14.9 – a huge gap. General Motors Company (NYSE:GM) has been buying back its stock for quite some time as well. It bought back $2.5 billion worth of stock in 2022, $11 billion worth of stock in 2023, and has bought back over $1 billion worth of stock in the first half of 2024. Through these buybacks, General Motors Company (NYSE:GM) has managed to boost EPS by decreasing its share count by 18% in the past year.

This move seems to be a vote of confidence from company management in terms of General Motors Company’s (NYSE:GM) intrinsic value and has definitely improved the stock’s valuation over the past few months. One reason for this vote of confidence may be the company’s EVs, such as the Chevy Silverado and the Cadillac Lyric SUV. In the second quarter, General Motors Company (NYSE:GM) delivered 22,000 EVs, representing a growth of 40% year-over-year and increasing the company’s market share in the EV space by 2.2%.

Considering the company’s execution of its EV strategy, investors expect it to generate greater profitability through its optimized portfolio and EV transition. As a result, General Motors Company (NYSE:GM) is looking like a good automotive stock to buy right now.

General Motors Company (NYSE:GM) was seen in the portfolios of 72 hedge funds in the second quarter, with a total stake value of $4.1 billion.