2 Stocks Too Cheap for Investors to Ignore Any Longer -- Why Now Is the Perfect Time to Buy
General Motors and Comcast are two juggernaut companies with a long history of returning value to shareholders.
Overview
Buying cheap stocks can be a great strategy. It's often referred to as value investing, and it's a powerful way for individual investors to spot inefficiencies in the market before Wall Street does. Simply put, a company trading at $2 has greater potential to double or triple in value than a household-name tech stock trading at $200. Here are two juggernaut companies trading at cheap valuations that certainly deserve more attention than they are getting.
General Motors (NYSE: GM) is consistently misunderstood by Wall Street and is trading at a cheap forward price-to-earnings (P/E) ratio of only about 6. Thanks to its cheap valuation, management has been decisive about buying back shares. In fact, GM has repurchased tens of billions of dollars' worth of shares and significantly reduced its outstanding share count, as you can see in the graph below.
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Originally published at www.fool.com.