1 Beaten-Down Stock to Buy in July
Automakers have faced numerous challenges over the past three years. When the COVID-19 pandemic hit, demand plunged and most auto factories had to close for two months or more. Then demand recovered almost overnight, forcing automakers to ramp up production rapidly. Before long, supply chain disruptions -- particularly a global semiconductor shortage -- began to wreak havoc with output. Soon thereafter, commodity costs surged. And now, inflation, rising interest rates, and the threat of a recession pose a threat to demand.
As a result, investors have lost patience with auto stocks like General Motors (NYSE: GM). GM stock has lost 45% of its value year to date. However, General Motors remains highly profitable, making it a great stock to buy in July following this sharp pullback in its share price.
On Friday, General Motors reported that U.S. vehicle deliveries fell 15% year over year in the second quarter. Some models posted big increases as supply improved compared to 2021, but new production disruptions contributed to sharp declines for other models.
Source Fool.com
