General Motors looks exciting amid improving chip supply

General Motors Co. (NYSE:GM) shares are down nearly 6% over the last two weeks amid growing concerns about chip shortage. However, UBS Wednesday provided some optimism saying the worst may be over for the automobile industry. It could be an opportunity to buy shares of some of the most exciting Automobile stocks before the rebound begins.

Fundamentals overview: GM looks substantially undervalued

General Motors stock is up 48% this year and over 128% in the last 12 months. However, the stock looks attractively valued at a P/E ratio of just 9.58. Its forward P/E of 8.68 implies more upside potential in the coming quarters.

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The company’s EV business is beginning to gain traction as it continues to shift from gasoline vehicles. As such, the long-term future appears to line up well with industry trends.

Technical overview: 100-day MA provides solid support

General Motors stock seems to enjoy strong support from the 100-day moving average. The trendline support also helped to initiate a rebound on Wednesday. News about growing optimism in the chip supply market could spur the stock price further in the coming days.

Investors can target extended rebounds at $64.31 and $70.19. The key support levels are $55.28 and $49.30.

Bottom line: Now seems like a good time to buy GM shares

In summary, GM stock appears poised for an extended rebound following the latest chip supply news. Now could be the time to buy GM shares.

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