Categories Analysis

It’s probably the best time to buy General Motors stock

Every serious investor will have a story of lost opportunity that they continue to lament over. Of course, opportunities don’t show up every second day, more so in the stock markets. The idea is to identify one before it vanishes. Perhaps, General Motors (GM) is one such value stock that you can’t ignore at the moment.

The GM stock has fallen about 23% this year and is currently trading at six times lower than its forward earnings. This makes the stock super cheap, especially when compared to its rivals. But what makes GM more attractive is its upside potential in the self-driving technology market.

Image: Wikimedia Commons

The autonomous vehicle market is expected to grow to $7 trillion by 2030. And GM is now at a pole position to capture the market by officially becoming the first company to mass produce a fully-autonomous vehicle. In June this year, GM manufactured 130 self-driving Chevrolet Bolt EVs and started testing them on roads, beating rivals including Tesla (TSLA), Ford (F), Google’s (GOOGL) Waymo and other smaller competitors.

GM had identified a shift of customer preference towards autonomous vehicles pretty early, acquiring Cruise Automation, a start-up that works on self-driving technology by 2016. Some reports suggest that GM may now cruise into the lucrative ride-hailing service, currently dominated by Uber and Lyft, by 2019.

Honda and General Motors join hands to build a new self-driving vehicle

General Motors is not short of funding either. Closely following the heels of $2.25 billion investment by SoftBank Group, Japanese automobile giant Honda Motor Company has pledged $2.75 billion in the company over the next one year. Honda has separately announced a $750 million towards Cruise Automation.

The Detroit-based carmaker has a PE ratio of 5.59 and PEG ratio of 0.74, clearly indicating that the stock is undervalued. Let not the opportunity slip between your fingers this time around.

General Motors mulls IPO for its self-driving arm Cruise

DISCLAIMER: The article does not necessarily imply the views of AlphaStreet, and contains opinions of the author alone. 

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top