Yahoo Finance Here's Why General Motors (GM) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
General Motors (GM)
One of the world’s largest automakers, General Motors held the largest share of the U.S. auto market at 16.2% in 2023. Headquartered in Detroit, the auto giant has had a long and checkered history. Founded in 1908, the company rose to dominate the U.S. industry. However, hit by the financial crisis, General Motors filed for bankruptcy on Jun 1, 2009. Just within 40 days, the firm emerged from bankruptcy. In 2010, the company launched its IPO – the biggest in U.S. history at that time – and has been steadily profitable since then. From going bankrupt in 2009 to becoming one of the world’s best-run car companies, General Motors has indeed come a long way.
GM sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Domestic industry's P/E of 13.1X, shares of General Motors are trading at a forward P/E of 4.8X. GM also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 2.3X, and a Price/Sales ratio of 0.3X.
Many value investors pay close attention to a company's earnings as well. For GM, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.40 to $9.40 per share for 2024. Per share GM boasts an average earnings surprise of 17.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GM to their portfolios.
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General Motors Company (GM) : Free Stock Analysis Report
