Why General Motors Company (GM) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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 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 sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Automotive - Domestic industry's P/E of 15.2X, shares of General Motors Company 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 2.2X, and a Price/Sales ratio of 0.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, eight analysts revised their earnings estimate higher in the last 60 days for GM, while the Zacks Consensus Estimate has increased $1.27 to $9.00 per share. GM also holds an average earnings surprise of 20%.
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
