General Motors GM stock has been undervalued despite strong financials due to concerns about its ability to stay competitive. However, GM’s investments in EVs and autonomous driving are boosting confidence in its long-term growth potential, with analysts bullish on its strategy and performance.

GM is now the second-leading EV seller in the U.S., surpassing Ford and doubling its EV sales in Q3. Year-to-date, GM’s EV sales have surged 105% to over 144,000 units, with the Equinox EV being the best-selling non-Tesla EV. Cadillac EVs have also seen high demand.

Analysts expect GM’s top line to contract in fiscal 2025 and 2026, with EPS declining but stabilizing in FY26. Despite this, GM stock is trading at a discount with a forward earnings multiple of 6X and a price-to-sales ratio of 0.3X, making it an attractive investment option.

Analysts have raised their price targets for GM stock, with JPMorgan setting a target of $80. Other firms like Barclays, Citigroup, Goldman Sachs, and UBS have also raised their targets. GM stock has increased by 15% year-to-date, outperforming market expectations.

In the AI sector, lesser-known companies may offer more lucrative investment opportunities than well-known stocks like Nvidia. These firms are tackling major global challenges and could deliver significant profits in the coming months and years. Investors should explore these “2nd Wave” AI stocks for potential growth.

Read more at Barchart: Is GM the Best Automaker to Invest in Now?