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.
Improving margins and a very affordable P/E ratio may mean GM is a steal right now.
About the Author
A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.
