5 Best Car Stocks To Buy Now

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 80

General Motors Company (NYSE:GM) is a multinational corporation headquartered in Detroit, Michigan. The company designs, manufactures, markets, and distributes vehicles and vehicle parts globally. It produces a range of vehicles, including cars, trucks, SUVs, and electric vehicles, under various brands such as Chevrolet, Buick, GMC, and Cadillac. General Motors Company (NYSE:GM) is one of the top car stocks to watch. 

On April 3, General Motors Company (NYSE:GM) reported an increase in sales in Q1 2023 compared to the same period in 2022, with a growth rate of 18% and an accompanying rise in its market share by 1.5%. In the first quarter of 2023, the company sold a total of 603,208 vehicles, driven by a 15% growth in retail sales and a 27% rise in fleet sales. The automaker particularly highlighted its leading position in fleet registrations, with the sale of 73,274 units in the quarter.

Barclays analyst Dan Levy maintained an Equal Weight rating on General Motors Company (NYSE:GM) and lowered the firm’s price target on the shares to $45 from $46 on April 17. According to the analyst, the expectations for Q1 earnings in the US auto and mobility sector are modest, which could lead to a positive reaction from shareholders. While end markets have been relatively stable, Levy believes that further improvement is necessary. He also expects that General Motors Company (NYSE:GM) outlook will remain consistent.

According to Insider Monkey’s fourth quarter database, 80 hedge funds were long General Motors Company (NYSE:GM), compared to 74 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 50 million shares worth nearly $1.7 billion. 

Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its Q3 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us with an attractive entry point to a name we know well.”