In this video, Motley Fool analysts Austin Smith and Blake Bos discuss three reasons to buy GM right now. The auto giant is introducing new product lines with higher margins to replace stagnant vehicle offerings, a move that already is flowing straight through to the bottom line because of improved operations. GM (and competitor Ford, for that matter), known for cranking out medium quality rental fleets for the likes of Hertz, is now seeing a dramatic uptick in quality rankings. This creates a more compelling vehicle purchase for consumers. Also, it is currently very affordable with a P/E of only 9.5, which is roughly half that of its competitors and seems to be a bargain at today’s prices. Improving its business will continue to make GM cheaper; it is an all-around solid company that is giving investors many reasons to view it as a potential turnaround play with a lot of upside.
Blake Bos and Austin Smith
Dec 11, 2012 at 12:00PM
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