Jim Cramer Looked At These 11 Stocks Recently

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 68

Cramer started by addressing what he described as the market’s apparent clairvoyance, noting that General Motors Company (NYSE:GM) has one of the lowest price-to-earnings ratios in the stock market. He pointed out that the company’s P/E ratio stands at just 4.3 times earnings, a stark contrast to the average P/E ratio of around 22 times earnings for S&P 500 stocks. He added:

“Ford and GM look like the single greatest bargains in the world. Ford pays a… 6.2% yield. General Motors, has one of the most voracious buybacks I’ve ever seen. Both seem incredibly cheap, at least until this tariff stuff started… Aha. Suddenly we know why those stocks look so cheap is because their future earnings are in grave danger. Turns out Ford and GM could be ridiculous value traps. While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies. Look out for big earnings cuts that will make the PE multiples go from, seem from very small to very large, making the stocks’ true colors come to life.”

General Motors (NYSE:GM) designs, manufactures, and sells a variety of vehicles and automobile parts, including trucks, crossovers, and cars, under several brand names like Buick, Cadillac, and Chevrolet. The company also provides financial services through GM Financial and operates in various market segments.