General Motors Co (GM): Automotive's Featured Underachiever Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

General Motors ( GM) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.7%. By the end of trading, General Motors fell 57 cents (-1.9%) to $28.63 on average volume. Throughout the day, 13.4 million shares of General Motors exchanged hands as compared to its average daily volume of 10.6 million shares. The stock ranged in price between $28.57-$29.17 after having opened the day at $28.95 as compared to the previous trading day's close of $29.20. Other companies within the Automotive industry that declined today were: Quantum Fuel Systems Technologies Worldwide ( QTWW), down 5.1%, Westport Innovations ( WPRT), down 3.2%, TRW Automotive Holdings ( TRW), down 2.9%, and Navistar International ( NAV), down 2.8%.
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General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. General Motors has a market cap of $38.32 billion and is part of the consumer goods sector. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate General Motors a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates General Motors as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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