7 Dirt Cheap Stocks to Invest In Now

3. General Motors Company (NYSE:GM)

Forward P/E Ratio: 4.67

Number of Hedge Fund holders as of Q2: 72

General Motors Company (NYSE:GM) is a dirt cheap stock to invest in now to diversify an investment portfolio in the auto industry. While the company designs, builds and sells trucks, crossovers, cars, and automobile parts, it also provides software-enabled services and subscriptions worldwide.

Even though GM’s internal combustion engine (ICE) pickups and SUVs remain the most profitable models, the company is pursuing growth opportunities around electric vehicles. The progress has been remarkable thus far.

General Motors Company (NYSE:GM) delivered 22,000 electric cars overall in the second quarter, up 40% from the previous year and giving it a 2.2 percentage point larger market share than it had a year earlier. Later this year, several new models will be introduced in dealerships, which might give the company a sustained boost.

The automaker is trading at a discount with a price-to-earnings multiple of 4.59, considering it is profitable, and management has been buying stock as one of the ways of returning value to shareholders.

Due to those share repurchases, the number of shares outstanding has decreased by 18% annually, providing shareholders with a larger stake in the business. A new $6 billion share repurchase authorization was also recently announced by General Motors Company (NYSE:GM).

In the second quarter, the company delivered earnings of $2.55 a share, up from $1.83 a year ago, as adjusted earnings increased 37.2% to $4.44 billion. Revenue came at a record high of $44.75 billion following a 7.2 % increase.

The Detroit automaker raised its earlier guidance of $12.5 billion to $14.5 billion, or $9 and $10, to between $13 billion and $15 billion, or $9.50 and $10.50, for full-year signaling strong growth metrics While trading at a discount General Motors (NYSE:GM) still yields 1.07% in dividends having paid $2.93 billion in dividends in the second quarter.

Based on our Q2 database of over 900 hedge funds, 72 held stakes in General Motors Company (NYSE:GM), totaling $4.07 billion. As of June 30, Harris Associates was the largest shareholder, with 34.36 million shares valued at nearly $1.6 billion.

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.”