We recently published a list of Top 10 Stocks Market Is Watching Today. In this article, we are going to take a look at where General Motors Company (NYSE:GM) stands against other top stocks market is watching today.

Chris Grisanti, MAI Capital Management chief market strategist, said in a latest program on CNBC that the market is going through a shift towards value stocks from growth stocks.

“A lot of investors miss is that you have to choose a great company, but you also have to choose a great entry price. And the valuation, especially over the last several years, has really gotten out of whack as growth has outperformed value by the most ever that we’ve ever seen. So now we’re just kind of getting back.”

The analyst warned that the latest selloff is not the “healthy correction” we used to see in the past.

“The economically sensitive stocks leading the way down. You’ve got banks that are tanking, you got airlines that are tanking, the worst groups are the financials, the industrial, and the consumer discretionary like retailers. So this is the market saying economic slowdown. Now is it right? You know the old saw about the market predicting eight of the last two recessions—maybe it’s wrong. The problem is one, it’s different this time so people should pay attention, and two, what generally happens is things can fall even on irrational fears, and then they become self-fulfilling.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

For this article we picked 10 stocks Wall Street is currently focusing on. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A group of technicians in a garage, inspecting car parts and ensuring safety compliance.

General Motors Company (NYSE:GM)

Number of Hedge Funds Investors: 64

Jon McNeill, former Tesla president and General Motors Company (NYSE:GM) board member, said in a latest program on CNBC that General Motors Company (NYSE:GM) has built its business on “resilience” and the company can survive through the tariff-related shocks.

“I think in GM’s case, GM has built its business on resilience and hasn’t been waiting to react—it has been proactive around this. They’ve invested in a really resilient supply chain and an agile approach to manufacturing. And so GM is in a strong position to mitigate the short-term impacts and ensure customers get the GM cars that they want and love. As Mary Barra said recently, “We think that we can mitigate 30 to 50% of the tariffs without deploying capital.” So there’s a lot of reaction in the moment, and I understand that. GM has built a business model that can adapt, and there’s a lot of noise, but GM and the team are really focused on execution and can absorb these kinds of shocks.”

Hotchkis & Wiley Large Cap Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:

“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”

Overall, GM ranks 7th on our list of top stocks market is watching today. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.