General Motors: The Billion Mile Moat

Muhammad Cheema 58 Followers Follow Summary General Motors is significantly undervalued, trading at a forward P/E of 8.2, 53.4% below the sector average. GM’s pivot to personal vehicle autonomy and Super Cruise positions it for high-margin software revenue, with Super Cruise subscriptions growing rapidly. Software revenues, including OnStar and Super Cruise, are projected to reach $25 billion by 2030, potentially doubling GM’s gross profit. I initiate coverage with a strong buy rating, citing valuation disconnect, robust software growth, and upcoming Level 3 autonomy as key catalysts. Scharfsinn86/iStock via Getty Images Introduction General Motors ( GM ) stock has enjoyed an extremely pleasant past year, rising by 48.9% . But even after that rise, the stock still trades at a very cheap forward price-to-earnings (P/E) ratio of This article was written by Muhammad Cheema 58 Followers Follow As an investor of stocks and shares for a number of years, I like to focus my strategy on generating growth and income. I enjoy researching different companies and passing on my knowledge and insight with Seeking Alpha. Previously, I studied Accounting and Finance at LSE, which enhanced my expertise in this area. Away from writing, I enjoy reading about philosophy, learning about different businesses, and exercising. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.