It is tough to find a bargain in a market where everyone’s got data, tools, and endless opinions. But there is one company that still looks like a steal, and it is hiding in plain sight: General Motors. That is right! The old-school Detroit automaker could be one of the most underrated plays in the entire market.

But before you hit the buy button, here is what you really need to consider.

Let’s start with the basics. GM stock is dirt cheap, trading at just 9 times earnings. That is a big red flag in a good way. When you see a company this profitable with such a low multiple, it usually means Wall Street is sleeping on it. Smart investors don’t ignore that kind of gap.

This Isn’t the GM You Remember

But this isn’t the same GM that got bailed out during the Great Recession. Those days are over. The company has cut billions from its cost base and is running lean. It no longer needs to flood rental lots with unwanted vehicles just to stay afloat. That strategy wrecked its image and crushed resale values. Today, GM builds to demand, not desperation.

Dylan / Unsplash / Over the past two years, General Motors slashed $2 billion in costs. That kind of discipline matters. It means the company doesn’t need sky-high vehicle sales just to break even.

In fact, it can stay profitable even if the U.S. auto market drops to around 10 million units per year. That is a shockingly low bar for a company of its size.

This shift has also helped GM keep incentives in check. Unlike other carmakers that need to offer big discounts to move metal, GM’s average transaction price holds strong. That keeps margins healthy. Fewer discounts, more profit per car - it is a simple formula that works.

Buybacks Are Fueling the Fire

Still not convinced? Let’s talk buybacks. GM has been scooping up its own stock like it is going out of style. Since 2023, it has launched $16 billion worth of share repurchases. As shares outstanding have dropped, the stock price has climbed. Investors love to see that kind of aggressive capital return.

The Car Talks / In 2025 alone, GM kicked off another $6 billion buyback program and boosted its dividend by 25%.

So, you reckon that is not a company in retreat. That is a company betting hard on its own future. When a business puts that kind of money behind its stock, it is worth paying attention.

CEO Mary Barra summed it up perfectly. GM is focused on three things: reinvesting for profitable growth, keeping a strong balance sheet, and giving money back to shareholders. That kind of discipline doesn’t just happen. It is part of a clear, focused strategy.

What is Holding the Market Back?

So, where does that leave you as an investor? GM’s not just building trucks and SUVs. It is building shareholder value. And right now, the market hasn’t caught on. The stock still trades like the company hasn’t changed. But it has.

Of course, this isn’t a guaranteed win. The auto industry is dealing with some serious headwinds. Tariffs are a moving target. EV production is expensive. And Chinese competitors are gaining ground. But that is exactly why GM looks interesting. The fear is already priced in, but the upside? Not yet.