Jim Cramer Questions Market Logic and Dissects These 7 Key Stocks

4. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 68

Continuing his bearish take on U.S. automakers, Jim Cramer cast doubt on General Motors Company (NYSE:GM) despite its seemingly cheap valuation, warning that earnings risks could still weigh heavily on the stock. He said:

“I think GM is challenged. […] GM, by the way, just sells at 3.8 times earnings. That sounds cheap, unless the earnings are going to be cut in half. Or cut up by two-thirds, that’s not cheap.”

Jim Cramer has been very sceptical of General Motors Company (NYSE:GM) recently. Here’s what he said last week about the stock’s direction:

“Well look with all due respect to the President, there’s this gap. And that’s what I’m concerned about. It’s the gap, which, you have a Jim Farley trying to do the right thing. Mary Barra, trying to do the right thing. Just have this period where they can’t build it there that quickly. I think that they need help or they need a path.”