Jim Cramer Sounds the Alarm on China Rhetoric and Dollar Panic Then Analyzes 11 Key Stocks

9. General Motors Company (NYSE:GM)

Number of Hedge Fund holders: 68

Cramer reacted to Deutsche Bank’s downgrade of General Motors Company (NYSE:GM), citing structural uncertainties and softening volumes. While he expressed some long-term confidence in leadership and fundamentals, he warned that the stock’s low valuation could be misleading if earnings expectations continue to decline. Here’s how he framed his view:

“Deutsche Bank says, reluctantly, they have to downgrade GM, buy to hold, structural uncertainties. They’re talking about some real headwinds. But this is the first time I’ve just heard point blank: volumes are going to be down.

And I think the reason why that matters is, look, we’re not talking about tariffs. Tariffs are going to hurt. But we’re talking about the American consumer. And now, this could mean that used cars come into vogue. But you’ve got a stock that has a 4 P/E. And what that really is typically is that maybe it has a 10, 12 P/E because the earnings are going to come down. So, I would be wary. I like this stock. I like Mary Barra. […]

Do I want to go against this? The stock’s actually up for the year. But maybe this is the first of many who say, listen, I’ve got to take my numbers down. Because people aren’t sure what is tariffed and what’s not.”