Back to top

Image: Bigstock

Why General Motors (GM) Could Be a Top Value Stock Pick

Read MoreHide Full Article

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; General Motors Company (GM - Free Report) .

General Motors in Focus

GM may be an interesting play thanks to its forward PE of 5.9, its P/S ratio of 0.4, and its decent dividend yield of 4%. These factors suggest that General Motors is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that GM has decent revenue metrics to back up its earnings.

General Motors Company

But before you think that General Motors is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.3% in the past 30 days, thanks to two upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push GM to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, General Motors is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


General Motors Company (GM) - free report >>

Published in