Over the past year, I have not had a bullish stance in General Motors (NYSE: GM). Last month, my view on the stock was neutral, as it outperformed the U.S. domestic light truck and auto sales for the first time. However, my view is now bullish, and I believe GM now offers a plausible investment prospectus. The company outperformed the domestic auto and light truck sales as posted by the Bureau of Economic Analysis. Moreover, GM is cheap relative to other automakers, and it offers a safe distribution.
The macro environment
The Bureau of Economic Analysis reported increasing vehicle sales on a SAAR basis by 4.8% for September 2017 YOY. Auto sales declined by 4.7%, while light trucks jumped by 11.4%.
