This 1 Unexpected Company Could be the Best Stock to Buy as Rare Earths Steal the Show

Core Insights - Rare earth metals are essential for modern technologies, with increasing global demand and supply risks, particularly due to China's export restrictions [1] - General Motors (GM) is positioning itself as a leader in rare earth production, having invested in this area since 2021, making it the only major U.S. automaker with a domestic magnet source [2] - GM's strategic move to reduce reliance on China enhances its competitive edge as rare earth elements become critical in global trade [2] Company Overview - General Motors has a market capitalization of approximately $54 billion and operates under brands such as Chevrolet, GMC, Buick, and Cadillac [4] - The company is transitioning aggressively to electric vehicles (EVs) through its Ultium platform and advanced driver-assist technologies [4] Stock Performance - GM shares have increased by about 8% year-to-date and 17% over the past year, outperforming the broader auto sector due to strong vehicle sales and a disciplined EV investment strategy [5] - The company's robust sales in North America, particularly in pickups and SUVs, contributed to better-than-expected Q2 results [5] Valuation Metrics - GM's stock is considered attractively valued, trading at a mid-single-digit P/E of 9x and around 0.3x sales, which is significantly lower than the average for large automakers [6] - The price/book ratio of 0.8x indicates that GM's stock is undervalued in terms of both earnings and assets, suggesting limited downside if growth strategies are executed effectively [6]