Diamond Hill Capital Stock Portfolio: Top 10 Stock Picks

7. General Motors Company (NYSE:GM)

Diamond Hill Capital’s Stake Value: $592.5 million

Number of Hedge Fund Holders: 68

General Motors Company (NYSE:GM) is engaged in designing, building, and selling trucks, crossovers, cars, and automobile parts. Piper Sandler analyst Alexander Potter upped the company’s price objective to $48 from $45, keeping a “Neutral” rating. As per the analyst, the company has managed to establish itself as the best Detroit-based automaker. Furthermore, the research firm opines that General Motors Company (NYSE:GM)’s buybacks and a low multiple offer downside protection. Through the integration of Cruise technology into the ADAS offerings, the company can enhance its Super Cruise system, which will make it more competitive in the advanced driver assistance market.

The integration can result in improved safety features, better autonomous capabilities, and higher customer satisfaction. Also, it can enable General Motors Company (NYSE:GM) to command premium pricing for vehicles that are equipped with advanced ADAS features, resulting in increased margins. The incorporation of Cruise technology can ramp up General Motors Company (NYSE:GM)’s development of fully autonomous vehicles in the future, providing a competitive edge in the emerging market segment.

Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Among our top individual contributors in Q4 were General Motors and Amazon. Automobile manufacturer General Motors Company (NYSE:GM) has allocated its capital well, repurchasing shares at a high rate and creating significant shareholder value. With a strong balance sheet, the company is well positioned to continue driving shareholder value for the foreseeable future. Further, there is some investor optimism about GM’s profitability as EV demand has stalled.”