5 Undervalued Blue Chip Stocks Hedge Funds Are Piling Into

4. General Motors Company (NYSE: GM)

Number of Hedge Fund Holders: 86   

Forward PE Ratio: 11.04

General Motors Company (NYSE: GM) is a Michigan-based company that makes and sells cars. It was founded in 1908 and is placed fourth on our list of 10 undervalued blue chip stocks hedge funds are piling into. The company’s shares have returned 119% to investors in the past year. In addition to vehicles, the company also sells financial services related to their purchase and maintenance. It is one of the largest and oldest automakers in the American market, selling cars, trucks, crossovers, and other related items. 

On June 8, General Motors Company (NYSE: GM) was named among the top auto picks of investment advisory Morgan Stanley on the back of the expected release of several electric vehicle cars in the coming months.

On June 4, Bank of America maintained a Buy rating on General Motors Company (NYSE: GM) stock with a price target of $80 on the back of confidence in the firm to deal with an auto chip shortage in the car industry better than rivals. 

Out of the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in General Motors Company (NYSE: GM) with 67 million shares worth more than $3.8 billion. 

Junto Investments, in its Q4 2020 investor letter, mentioned General Motors Company (NYSE: GM). Here is what the fund has to say about General Motors Company in its letter:

“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”