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

A huge car manufacturer General Motors (NYSE: CEO) is trading at a very cheap valuation, less than 5 times projected earnings. Meanwhile, the company is extremely profitable, management is buying back shares like crazy, and the growth potential is huge as its electric vehicle (EV) and autonomous vehicle strategy evolves. In this video, I sit down with Fool.com auto expert John Rosevear to discuss why this seemingly strong company is trading so cheaply.

*Share prices as of August 23, 2024 are given. Video published on August 30, 2024.

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John Rosevear has no stake in any of the stocks mentioned. Matt Frankel has shares in General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 call options on General Motors. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may receive compensation for promoting its services. If you decide to subscribe through their link, they earn additional money that supports their channel. Their opinions remain their own and are not altered by The Motley Fool.