General Motors Firing on Many Cylinders

General Motors’ (NYSE: GM) stock has been trading at rockbottom valuations for a long time. The fear that a slowing of demand for vehicles would ravage GM’s bottom line has been holding back the stock, but whenever the next downturn occurs, GM will be a leaner and more efficient company than it was last time around. Investors also don’t seem to be giving GM’s innovation initiatives enough credit.

While Tesla currently manufactures America’s top-selling electric vehicle, GM’s Bolt claims the second-place position on the sales chart, and GM’s production capabilities mean that it’s in much better position to capture growth in the category as demand increases at the consumer and fleet levels. GM also seems to be at the forefront of autonomous-vehicle technology, having recently unveiled a car for ride-sharing use, on track for a 2019 debut, that doesn’t have a steering wheel or pedals.

GM shed its money-losing European operations last year, and it expects its 2018 results to be in line with its 2017 results, with new fullsize pickups set to launch later this year, helping to accelerate earnings in 2019.

With a forward-looking price-toearnings (P/E) ratio recently near 6.5, a healthy dividend that recently yielded 3.7 percent, seemingly exaggerated risk factors and underappreciated growth prospects, GM stands out as an attractive, undervalued income opportunity at recent prices.