Each week on our Industry Focus: Financials show, longtime Fool.com contributor Matt Frankel, CFP, and host Jason Moser each discuss a stock they're watching. In this clip, recorded on June 21, find out why both experts have big-cap market leaders on the top of their watch list.
Jason Moser: Well, before we take off, Matt, we've got some stocks for our listeners to keep their eyes on this week. What is a stock that you'll be watching this week?
Matt Frankel: General Motors (GM 1.50%).
Moser: Speaking of autos.
Frankel: I've mentioned that a few times. I think you're going to see a lot of consumer demand when the supply chain issues get worked out that are going on right now. They recently upped their investment spending plan in electric vehicles from I think $27 to $35 billion by 2025. They are spending heavily in EVs. They're partnering for hydrogen fuel cell technology, things like that. I think they are not only one of the most underappreciated opportunities in electric vehicles, but in the entire stock market. I think GM has 10X potential over the next decade.
Moser: I love it.
Frankel: They're not only going after the passenger market, they're going after delivery, they're going after air transport, they're going after commercial vehicles. They're trying to just go into everything and they're willing to spend the money to do it right. They have the know-how. Their Cruise subsidiary itself could be worth more than GM is worth today.
Moser: Wow.
Frankel: They see the autonomous transportation industry is a $7 trillion opportunity, when you talk about an automated version of Uber (UBER 3.41%) that they could eventually make, or something to that effect. I think that's one of the most overlooked stocks in the market. I am heavily invested in GM, and people give me a hard time about that, because it's seen as a legacy company. It's seen as a boring automaker. But I think in a decade you're going to look back and say that it was not so boring.
Moser: Sometimes you got to be able to get over that legacy opinion because, well, not all companies are able to make that pivot, some are. You've got to make sure to follow that. I'm sure every listener just heard GM and 10X and did a double-take, but we'll definitely be keeping an eye on that one. That's a good one.
Frankel: Not a lot of people share that opinion with me. I'll be fair.
Moser: Sometimes you got to get out there. Sometimes you've got to put yourself out there, Matt. You're doing that. I love it. I'm going to keep an eye on Nike (NKE 1.81%) this week talking about companies with pricing power, companies that could be impacted by inflation or supply chain concerns. Nike is, everybody knows what Nike is. They've got earnings coming out on Thursday after the market closes. They've had a really good last 12 months given everything that's going on, it basically matched the market over the last 12 months. But year-to-date the stock is down almost 10%, and that could be because it was a company that recovered a little bit earlier from the pandemic concerns. But given everything that we've talked about on today's show with inflation, with supply chain constraints, I'm just going to be interested to hear management's take on those concerns on Thursday during the earnings call. So be keeping an eye on Nike and earnings on Thursday.
