Volkswagen, by contrast, had worldwide quarterly earnings growth (ending Sept. 30) of over 60% and quarterly revenue growth (year-over-year) of nearly 27%. Talk about a stock that is undervalued! Even though VLKAY is selling near its 52-week high, its forward PE ratio is only 6.63 and its price-to-earnings-to growth (PEG) ratio (five-year expected) is a phenomenally low 0.07.
GM shares have a one-year price chart that looks like an "inverted head-and-shoulders" formation, technically speaking. Its chart below shows quarterly revenue-per-share growth has been outstanding.
GM data by
When the federal government orchestrated a bailout of GM, few thought that the big auto and parts manufacturer would rebound so quickly. Its latest plan to spend $5.5 billion to buy back shares comes as the Obama administration works to wind down financial-crisis era programs from the inherited financial fiasco that culminated in 2008.
Initially the stock repurchase announcement last Wednesday sent GM shares surging 6.6% and closd that day's trading session at $27.18. In spite of options expirations and disappointment over the inaccuracy of those who tried to interpret the Mayan calendar, shares were trading Friday above $27.GM stock trades at a forward (one-year) PE ratio of 7.17 and if you like the number 7, you'll be pleased to know its five-year expected PEG ratio stands at 0.77. As of the most recent quarter ending Sept. 30 its year-over-year quarterly earnings was -13% and quarterly revenue growth was a positive 2.3%. In the most recent quarter its total cash was almost $32 billion while total debt was a more manageable $16.65 billion. In comparison with Volkswagen's total cash of around $26 billion and total debt of over $119 billion, GM's financial balance sheet is looking better and better. It may be too early to say, as the late Etta James would sing, "At Last", but it looks like GM has a chance to glide off the fiscal cliff and soar into a thermal updraft of low interest rates and global monetary easing. By the way, the federal government still has GM shares left at the Treasury. They were purchased at an average price of $69.72 a share, so GM's stocks needs to go up over 250% for the government to come close to breaking even. This gives shareholders a hint for an upside price target.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV