GM Stock: Wait and See, or Buy the Dip?

General Motors (GM) is among the largest automobile companies in the world, valued at $54.8 billion by market cap. In the last 10 years, GM stock has underperformed the broader markets significantly, returning 50.4% to shareholders. Even if we adjust for dividend reinvestments, cumulative returns for the auto stock stand at 86%, compared to the 243% returns of the S&P 500 Index ($SPX). 

However, this massive underperformance means that GM stock trades at a cheap valuation, making it an enticing option for value investors. Notably, HSBC cited the stock's “discounted valuation” when it raised its GM price target on Monday to $58 from $56, and backed a “buy” rating.