GM vs. TSLA: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Automotive - Domestic sector should consider General Motors (GM) and Tesla (TSLA) for potential value opportunities, with GM currently appearing to offer better value based on various metrics [1]. Valuation Metrics - GM has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to TSLA, which has a Zacks Rank of 3 (Hold) [3]. - GM's forward P/E ratio is significantly lower at 4.08, while TSLA's forward P/E is 102.62, suggesting GM is undervalued relative to TSLA [5]. - GM's PEG ratio is 0.65, indicating better value when considering expected earnings growth, whereas TSLA's PEG ratio is 4.34 [5]. - GM's P/B ratio stands at 0.71, compared to TSLA's P/B of 13.23, further highlighting GM's relative undervaluation [6]. - These metrics contribute to GM's Value grade of A and TSLA's Value grade of F, reinforcing GM's position as a superior value option [6][7]. Earnings Outlook - GM is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].