Yahoo Finance Why General Motors Company (GM) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
General Motors Company (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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 4.9X for the current fiscal year compared to the Automotive - Domestic industry's P/E of 13.7X. Additionally, GM has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 2.3X. Value investors should also note GM's Price/Sales ratio of 0.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for GM, while the Zacks Consensus Estimate has increased $0.32 to $9.32 per share. GM also holds an average earnings surprise of 17.8%.
Investors should take the time to consider GM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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General Motors Company (GM) : Free Stock Analysis Report
