GM vs. TSLA: Which Stock Should Value Investors Buy Now?

Automotive - Domestic Sector Analysis - General Motors (GM) and Tesla (TSLA) are two prominent stocks in the Automotive - Domestic sector [1] - The analysis focuses on identifying which stock offers better value for investors based on valuation metrics and earnings outlook [1] Valuation Metrics and Rankings - General Motors has a Zacks Rank of 2 (Buy), indicating positive revisions to earnings estimates [3] - Tesla has a Zacks Rank of 3 (Hold), suggesting a neutral outlook on earnings revisions [3] - GM's forward P/E ratio is 4.84, significantly lower than Tesla's forward P/E of 116.51 [5] - GM's PEG ratio is 0.38, compared to Tesla's PEG ratio of 5.75, indicating GM's stock is more attractive relative to its earnings growth [5] - GM's P/B ratio is 0.76, while Tesla's P/B ratio is 17.24, further highlighting GM's undervaluation compared to Tesla [6] Style Scores and Value Grades - GM earns a Value grade of A, reflecting strong fundamental metrics such as P/E, P/S, earnings yield, and cash flow per share [4][6] - Tesla receives a Value grade of D, indicating weaker valuation metrics compared to GM [6] Conclusion - GM stands out as the superior value option due to its solid earnings outlook and favorable valuation metrics [6]