General Motors is undervalued with strong financials and growth potential, making it a buy.

From Nasdaq: 2025-03-18 08:58:00

General Motors (GM) is currently undervalued with a forward sales multiple of 0.27, below its five-year average and industry, presenting a value opportunity. Full-year 2024 revenues reached $187 billion, setting records in adjusted EBIT ($14.9 billion) and earnings per share ($10.60). Despite a YTD 8% decline, GM remains well-positioned for future gains.

GM dominates the U.S. market with a 16.5% share, driven by strong demand for its pickups and SUVs. It was the second best-selling EV maker in the U.S. in the second half of 2024, with 114,000 EV sales. GM’s China restructuring efforts are paying off, aiming to return to profitability. Cost-cutting initiatives and strong liquidity position GM for growth.

Investors are advised to consider GM now, with a Zacks Rank #2 (Buy). Estimates suggest a 9% and 4% year-over-year increase in 2025 and 2026 EPS. Wall Street target price of $59.92 implies a 22% upside. GM’s strategic tariff readiness and investor-friendly moves, including a dividend hike and buyback program, further strengthen its position.



Read more at Nasdaq: GM Trading at a Deep Discount: 6 Reasons to Buy the Stock Now