7 Best Low Cost Stocks To Buy Under $50

3. General Motors Company (NYSE:GM)

Share Price: $46.48

Forward P/E Ratio: 4.59

Earnings Growth This Year: 30.60%  

Number of Hedge Fund Holders: 72

General Motors Company (NYSE:GM) is a leading automotive manufacturer in the United States. The company has a robust portfolio of combustion engine and electric vehicles sold under powerful brand names including but not limited to GMC, Chevrolet, and Cadillac brands.

The company has been doing well in terms of its production capacity and with the general supply chain issues fading away the business seems to be performing above its pre-pandemic levels. During the second quarter of 2024, the company delivered 40% year-over-year growth for its EV portfolio, which bested the market average of 11%.

The second quarter marked the best quarterly sales for the company since the fourth quarter of 2020, meaning that it has successfully beaten its pandemic lows. These record sales give the company price power leverage, which resulted in its revenue growing 7% year-over-year to reach $48 billion.

The stock of General Motors Company (NYSE:GM) is trading at only 4.59 times its forward earnings with analysts expecting its earnings to grow by 30.60% during the year. Thereby making it cheaply valued at current levels.

Diamond Hill Large Cap Concentrated Strategy 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.”