Jim Cramer Was Bullish on 10 Stocks Due to Share Buyback Activity

6. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 71

General Motors Company (NYSE:GM) is one of the stocks Jim Cramer was bullish on due to share buyback activity. Cramer praised the company’s CEO during the episode. The Mad Money host said:

“Now, the next five buyback monsters are more elite. They’ve retired more than 40% of their shares in the last decade. For starters, there’s General Motors. Now, get this, General Motors has shrunk its share count by 40.1% since 2015. This one’s interesting because GM’s simply retiring the new shares it issued during the financial crisis and its aftermath. Still, when you look at the rest of the auto industry, it’s clear CEO Mary Barra has been doing a remarkable job. She is so good. After tariff concerns kept a lid on GM for much of the first half of the year, the stock’s exploded higher in recent months. It’s now up over 50% year to date, trading at its highest level since the company returned to public markets in 2010. The best part, even after this move, GM still sells for just under seven times next year’s estimates. I bet it can keep climbing, especially if we get more rate cuts from the Fed. Now, you know, I expect that.”

General Motors Company (NYSE:GM) manufactures vehicles and parts under brands such as Chevrolet, Cadillac, Buick, GMC, Baojun, and Wuling. Cramer discussed the company during the October 27 episode and said:

“In the United States, GM said that they achieved their highest third-quarter market share since 2017, thanks to their industry-leading full-size pickup and SUV franchise, as well as record crossover deliveries. Even though they’re pulling back on electric vehicles, Chevy’s now the number two EV brand in America. Plus, GM’s also starting to get meaningful contributions from their self-driving Super Cruise technology as well as OnStar and other software and services business. It’s coming together for GM.

Now, GM’s bread and butter North American business was still down substantially year over year, thanks to the big margin decline, but GM International’s cleaning up. Even the previously challenged Chinese business helped make up the decline in North America… On the conference call, CEO Mary Barra thanked President Trump for slapping tariffs on medium and heavy-duty trucks, protecting GM from competition while giving them some offsets to deal with tariffs on imported car parts. No business ever got hurt by staying in the White House’s good graces.

Hey, look, even after the monster run, I think the future looks really great for GM, especially if the Federal Reserve cuts rates again this weekend. You know, I think they’re going to… Wall Street had a lot of worries for both Ford and GM, and it turned out things weren’t that bad, and that’s okay when you have low price to earnings multiples like we have here. More importantly, I think both stocks can keep running. Even after these moves, GM sells for seven times this year’s earnings estimate, six times next year’s earnings estimates. Come on.”