General Motors Is the Top S&P 500 Stock to Own for 2015By twocents@thestreet (Bret Kenwell) NEW YORK (TheStreet) -- After taking a look at the top European stocks to own for 2015, TheStreet TVs Jack Mohr wrapped up his list of the top five S&P 500 stocks to own for the new year. At No. 5 is FacebookBy twocents@thestreet (Bret Kenwell) NEW YORK (TheStreet) -- After taking a look at the top European stocks to own for 2015, TheStreet TVs Jack Mohr wrapped up his list of the top five S&P 500 stocks to own for the new year. At No. 5 is Facebook , No. 4 is Citigroup , No. 3 is Microsoft and No. 2 is Harman International . Must Read: The U.S. Labor Markets Chicken-and-Egg Dilemma For the No. 1 stock to own this year, Mohr went with a member of the Big Three, choosing General Motors as his top stock. Shares of the automaker have not fared well in the past 12 months, declining some 12%, and more than 20% at the time of its lows, after a series of vehicle recalls rocked the company. General Motors GM data by YCharts But GM is looking to put 2014 behind it and get back to doing what it does best, which is making vehicles. The company is fundamentally well-positioned and has likely gotten most of its recalls out of the way. The only thing left to face? A fine from the Department of Justice stemming from the companys ignition switch controversy. In Mohrs estimation, the fine will likely be between $500 million and $2 billion. While that is a lot of money, GM has $28 billion in cash on its balance sheet and generates over $6 billion in free-cash flow per year. Thats more than enough to absorb a blow from the Justice Department, even if it is several billion dollars. Following a year riddled with issues, the stock is now dirt cheap, he said, trading at a 15% discount to Ford on a price-to-earnings basis. Mohr estimates General Motors will earn $4.80 per share in 2015. By using a conservative estimate of 10 times earnings, that would give the stock a target price of $48, which would represent upside of 33%, he concluded. Must Read: How to Buy Penny Stocks (for Beginners) - - Written by Bret Kenwell Follow @BretKenwell Click to view a price quote on FB. Click to research the Internet industry. ift.tt/1gB4pon
Posted on: Fri, 09 Jan 2015 21:59:54 +0000
Trending Topics
Recently Viewed Topics
© 2015