In today's video, industrials editor and analyst Brendan Byrnes discusses Fitch's recent upgrade of GM's credit to BB+, which is just below investment grade. While not a huge deal right now (getting to investment grade is the big one), the upgrade shows that GM continues to make progress. GM is solidly profitable, with over $32 billion cash in the bank, and has been steadily improving its vehicle lineup. The stock looks cheap, trading around five times forward earnings, and GM's deal with workers in Germany is a good first step in cutting costs in Europe. Check out the video below for more on the upgrade and GM.
With GM and Ford looking incredibly cheap, investors are rightly putting these stocks on their radar. Ford, in particular, has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its , and has done a remarkable job paying down its . But Ford's price has significantly underperformed the market this year. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on right now -- and why. Simply to get instant access to this premium report.
Austin Smith owns shares of Ford. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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