GM Just Announced a $20 Billion Buyback. Tesla Trades at 350 Times Earnings. Here’s Which Auto Stock I’d Buy Today.
Tesla (NASDAQ: TSLA) and General Motors (NYSE: GM) may seem light-years apart in how Wall Street views each automaker, but both are interesting stocks given what they can offer investors. If I had to choose just one to buy today, the answer isn’t necessarily obvious. Let’s have a deeper look.
GM doesn’t grab headlines like Tesla, but the legacy car and truck manufacturer is posting numbers that should attract buy-and-hold investors. On Oct. 20, GM released its third-quarter results, which showed revenue of $50 billion, a nearly 3% increase from last year. The company also approved a new $20 billion share buyback and increased its full-year guidance for adjusted automotive free cash flow to $11.5 billion to $12.5 billion.
Wall Street wasn’t overly impressed with GM’s results. It instead focused on potential cost increases due to inflation and lingering electric-vehicle losses. I believe these fears are largely overblown, and there was more positive news for GM than negative with this report.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.