GM Stock Looks More Tempting Than Ever
Two months ago, General Motors (NYSE: GM) reported solid results for the final quarter of 2021, despite severe supply chain constraints. For the full year, GM delivered a record adjusted operating profit and record adjusted earnings per share (EPS) of $7.07. Moreover, management projected that the General would achieve equally strong results in 2022.
Despite this favorable outlook, GM stock has lost more than a quarter of its value so far in 2022 and has fallen about 20% since its earnings release. The continued divergence between GM's performance and its stock price makes GM shares look like a fantastic bargain.
The global semiconductor shortage forced GM to sharply reduce production compared to pre-pandemic levels last year. In the key North America region -- where the U.S. auto giant generates the bulk of its revenue and profit -- wholesale volume fell from 802,000 units in the fourth quarter of 2020 to around 650,000 units per quarter in the first half of 2021 before bottoming out at just 423,000 units in the third quarter.
Source Fool.com
