NEW YORK (TheStreet) -- General Motors Co. (GM) is doing a great job selling cars and trucks this year. However, its stock is down 8% this year, which means it has underperformed the S&P's 500 index by 15% and Ford's (F) stock by 21 points, not counting dividends, according to Barron's "Ahead of the Crowd" column.
Why the disconnect, asks Barron's? "A faulty ignition scandal has marred GM's image, costing it two-thirds of last year's profit in recall fees. Yet last month the company sold 1% more vehicles than a year ago.
"Adjusted for two fewer selling days in June this year, sales were up 9%. Pricing looks plump, too. GM says average transaction prices are up $2,700 over last year.
However that disconnect between company strength and stock weakness makes GM worth a look by bargain hunters. Now just under $38, they should rise more than 30% to $50 over the next year."
Shares of GM are down -0.56% to $37.49 in early afternoon trade.
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, 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 has had sub par growth in net income."