Northern, WI 08/27/2013 (usastockreport) – Warren Buffett increased his stake in General Motors by 60%. General Motors had been facing heavy problems with its operational and financial performance and had reported earnings for the second quarter which were 20% lower than the earnings reported for the same quarter of previous year.
It is however been argued by the analysts that there would be an increase in the demand for automobiles in the US markets in the near future as the cars of the US consumers are slowly turning out older in line with the historical standards. Further, it is expected that the European markets for automobiles would also effectively recover in the days to come. The analysts on Wall Street had taken cues from these expectations to estimate that General Motors Company (NYSE:GM) would prove to present higher level of EPS and had further forecasted that the stock would trade at levels of 8 times the estimated earnings to present a five year PEG well below the level of 1.
It is further worth noting that General Motors Company (NYSE:GM) had been the fourth most popular stock among the hedge fund managers in the last quarter. All such bright prospects for the stock of this major player in the automobile industry prove to bring back the lost investor confidence towards its shares. It is expected that the stock would move to present effective returns to the investors in the near future and would turn out highly profitable in the markets.