Shares of General Motors and Ford Motor could rise at least 25 percent in the next year, with U.S. auto sales likely to come in stronger than many investors fear, according to a report on Sunday in Barron’sfinancial newspaper.
Both companies’ stocks look cheap, Barron’s said. Ford and General Motors trade at 6.6 times and 5.6 times expected 2016 earnings, respectively. The broader S&P 500 has a forward price-to-earnings ratio of 17.
