Josh Brown Loves GM Right Now: 'They're Going From A Combustion Engine Giant To An Electric Giant'

Josh Brown, CEO of Ritholtz Wealth Management and author of the new book “How I Invest My Money,” joined Benzinga’s PreMarket Prep Friday morning.

Electric vehicle stocks have been red-hot in 2020, and Brown said his favorite stock at the moment is unconventional EV play General Motors Company (NYSE:GM).

Changing GM Story: Brown discussed his excitement about General Motors due to a combination of a recent technical breakout and a shift in the company's fundamental story.

“The stock I’ve been most excited about recently is General Motors, which is a hometown favorite for you guys," said Brown. "People have been saying it’s like a value stock—it’s cheap, it’s cheap—for like 12 years. But I’m not interested in that. I don’t want to buy something just because it’s cheap because I think markets are pretty efficient and my attitude is it’s cheap for a reason."

However, a recent technical breakout in GM’s shart suggests something may have changed in the minds of investors.

“They’re going from a combustion engine giant to an electric giant. It looks like they want to get this done like overnight," he said.

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GM Vs. Tesla: Brown noted GM is beating both Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Tesla, Inc. (NASDAQ:TSLA) to a major U.S. market in launching robo-taxis in San Francisco in December.

"They keep announcing more and more investment in next-generation stuff, so you look at that, you look at the valuation Uber and Lyft have on the market and you think about the potential valuation for what Cruise might be. It's the first autonomous taxi service in any major city in the country,” Brown said.

“They’re getting this done before Google, they’re getting this done before Tesla, and I don’t think the share price has gotten enough credit for that,” Brown said.

Brown said he is not calling for GM to trade at a similar valuation as Tesla, but argued that the valuation gap "should close” between the two stocks.

“Maybe one is too expensive, but one is probably too cheap."

Watch the full interview with Josh Brown in the clip below, or listen to the podcast here

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga's YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.