5 Safe Stocks To Buy For Beginner Investors

3. General Motors Company (NYSE:GM)

Number Of Hedge Fund Holders: 90

General Motors Company (NYSE:GM) is one of the largest multinational automotive manufacturing corporations in the world. Shares of the company turned green in the after-hours trading session on April 26 following its optimistic profit for the first quarter. The Michigan-based automaker reported an EPS of $2.09 on an adjusted basis, crushing expectations of $1.68 per share.

On April 27, Citi analyst Itay Michaeli raised the price target on General Motors Company (NYSE:GM) to $98 from $95 and maintained a Buy rating on the shares. According to the analyst, General Motors Company (NYSE:GM) delivered a strong Q1, a “confidently confirmed” 2022 outlook and “encouraging” electric vehicle updates.

General Motors Company (NYSE:GM) is a favorite among elite hedge funds, making it a safe choice for anyone starting their investment journey. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is one of the biggest shareholders in General Motors Company (NYSE:GM) with 33 million shares worth more than $1.9 billion. Overall, 90 hedge funds were bullish on the stock by the end of December 2021.

Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:

“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.”