General Motors Trades for Just 5 Times Earnings. Incredible Bargain or Value Trap?

Massive automaker General Motors (NYSE: GM) trades for a rock-bottom valuation of less than 5 times forward earnings estimates. Meanwhile, the company is extremely profitable, management is buying back stock hand over fist, and there's a ton of growth potential as the electric vehicle (EV) and autonomous vehicle strategy evolves. In this video, I sit down with Fool.com automotive expert John Rosevear to discuss why this seemingly strong company is trading so cheaply.

*Stock prices used were the morning prices of Aug. 23, 2024. The video was published on Aug. 30, 2024.

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John Rosevear has no position in any of the stocks mentioned. Matt Frankel has positions in General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy . Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.