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.
Austin Smith owns shares of General Motors Company and Ford. Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford and Hertz Global Holdings. Motley Fool newsletter services recommend Ford and General Motors Company. 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.