Sarat Sethi: General Motors is cheap stock with strong fundamentals

Sethi says GM is value play suited to investors nervous of a downturn ahead.
General Motors reported its financial results for the first quarter a day earlier.
Shares of the largest U.S. automaker are down roughly 40% for the year.

General Motors Company (NYSE: GM) is a value play, perfectly suited to investors that are nervous of a downturn ahead, says DCLA’s Sarat Sethi.

Sethi explains why GM is worth owning at present

The stock that trades at six times earnings is down roughly 40% for the year. Making his case for the legacy automaker this afternoon on CNBC’s “Power Lunch”, Sethi said:

A day earlier, General Motors said its adjusted per-share earnings in the fiscal first quarter handily topped Wall Street expectations.

Sethi is also bullish on General Motor’s push into EVs

Sethi also likes General Motors for the fact that it’s committed to investing and expanding its footprint in the global market for electric vehicles. Speaking with CNBC’s Tyler Mathisen, he noted:

Last month, the Detroit automaker spent $2.10 billion to increase its ownership stake in Cruise, its self-driving business, further highlighting it’s devotion to the future.