Insider Just Bought 25,000 Shares of This Automaker
Editor’s Note: We have a bombshell event going on this week at Monument Traders LIVE.
Bryan Bottarelli and Karim Rahemtulla will be going live on Thursday, Aug. 22 at 2 p.m. EST as we prepare for a MAJOR market moving event.
On Friday, Sept. 5, new employment data could rock the entire markets, and we’re going to make sure you’re well prepared.
Last time an event like this happened, a unique trade could have led to a max gain of 135.39% overnight!
And we believe this one could be even bigger.
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– Ryan Fitzwater, Publisher
One of the top stocks on my watchlist this week is General Motors (GM).
The automaker came in with excellent numbers last week and raised its full year guidance.
But there are a few other big reasons why I like the GM going forward.
For one, the company’s CFO Paul Jacobson recently purchased 25,000 shares of GM on July 26. The buy came shortly after the earnings sell-off and was worth about $1.1 million total.
Second, the automaker is cutting costs and buying back shares at current levels.
Third, they’re doing the right thing on electric vehicles – going slower than expected and putting customers first.
And fourth, overall earnings for 2024 are expected to come in over $10 per share, meaning the shares are currently trading at around 5 times this years numbers.
While GM is showing strong fundamentals, there are a few key points I want to make about the auto sector.
Auto companies, with the exception of Tesla (TSLA), tend to trade at lower valuations due to their legacy issues and higher costs. This makes them more sensitive to downturns.
So if a recession happens (a REAL recession not the panic doom and gloom stuff you see in the news), then you wouldn’t want to be in GM. But other than that, the company is flashing bullish signals which is why it’s one of my top watchlist picks right now.
Action Plan: Despite some risk in the event of a true economic recession, GM offers strong value if you take a more conservative approach.
That’s why I recently got positioned on a long-term trade on GM in The War Room. This strategy involves starting low and working your way up, so you can make any adjustments if necessary.
Click here to unlock this latest trade on GM.
And if you like our watchlist picks, Bryan and I have an entire list of stocks in The War Room for potential trades. Some of our winners last week include my 48% winner on FLR in 7 days and Bryan’s 43% gain on WMT in less than 24 hours.
