General Motors: Brace For Substantial Returns To Shareholders

PropNotes
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Summary

  • General Motors stock is trading at an incredibly low 4.8x FWD P/E, presenting a significant value opportunity despite current market conditions.
  • GM has consistently beaten EPS and sales estimates over the past two years, and growth on both the top and bottom line is expected to continue.
  • Management has retired over 300 million shares since early 2022, which is incredibly accretive for shareholders at this price.
  • Capital returns are set to increase dramatically as long as operational strength and the current 'underpricing' continue.
  • We rate GM stock a 'Strong Buy'.

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When it comes to investing, getting a solid value for your deployed capital is a key component of producing substantial returns over time.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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