5 Best Undervalued Automobile Stocks to Buy Now

4. General Motors Company (NYSE:GM)

PE Ratio as of July 8: 5.14

Number of Hedge Fund Holders: 76

On July 1, General Motors Company (NYSE:GM) reported that the company’s vehicle wholesale volumes suffered in the second quarter of 2022 due to supply chain constraints. The company said that it expects its net income for Q2 2022 to fall between $1.6 billion and $1.9 billion. Moreover,  General Motors Company (NYSE:GM) reported that it sold roughly 582,000 vehicles in the U.S. in the second quarter of 2022, down 15% year over year. However, for the full year 2022, General Motors Company reaffirmed its net income guidance range of between $9.6 billion and $11.2 billion and its EPS-diluted guidance range of between $5.76 and $6.76. The company also still expects to increase its wholesale volumes increase by up to 30% year over year by the end of 2022.

As of June 5, Barclays analyst Brian Johnson has a $52 price target and an Overweight rating on General Motors Company (NYSE:GM).

In the first quarter of 2022, Berkshire Hathaway raised its stakes in General Motors Company (NYSE:GM) by 4%, bringing them to $2.71 billion. Berkshire Hathaway is the most prominent shareholder in the company.

As of July 8, General Motors Company (NYSE:GM) has a trailing-twelve-month PE ratio of 5.14.

At the close of Q1 2022, 76 hedge funds were long General Motors Company (NYSE:GM) with stakes worth $5.50 billion. This is compared to 90 positions in the preceding quarter with stakes worth $7.13 billion.

Oakmark Funds, an investment management firm, mentioned General Motors Company (NYSE:GM) in its “Oakmark  Global Fund” first-quarter 2022 investor letter, here is what the firm said:

“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are underappreciated.”