Bear Market Opportunities: Discount Stocks for Investment

Investment insights: Experts highlight General Motors, PayPal, and Ryman as undervalued stocks. Despite challenges from tariffs and inflation, these companies show promising potential for long-term growth amid market uncertainty.

Date: 10-04-2025

AI Rating: 7

Market Conditions and Economic Outlook
The ongoing bear market in the S&P 500 presents both challenges and opportunities for investors looking for undervalued stocks. The implications of President Trump's tariff policies and anticipated inflation could lead to economic pressures and increased chances of a recession in 2025. These macroeconomic factors may create volatility in stock prices, which can influence investor sentiment.

General Motors (NYSE: GM)
General Motors has experienced a notable decline in stock price, down over 23% from its 52-week highs. The imposition of new auto tariffs is a significant concern that could affect profit margins and EPS. However, GM reported an impressive 11% revenue growth year-over-year in its most recent quarter, which demonstrates resilience. The company's strategy in the EV market and a newly announced $6 billion stock buyback program indicate potential for value recovery. GM’s guidance suggests that even in adverse scenarios, the stock could remain undervalued at under 8 times forward earnings, offering a potential safety margin for investors.

PayPal (NASDAQ: PYPL)
PayPal has faced challenges, especially following a leadership change aimed at revitalizing the company. Although it has seen a rebound previously, the stock has now retraced gains and trades at around 13 times forward earnings. The company's aggressive buyback strategy, supported by $6 billion in annual free cash flow, positions it as a potential long-term play, contingent on successful execution of its growth initiatives. If the management achieves double-digit EPS growth, this can enhance investor confidence and drive stock prices upward in the upcoming months.

Ryman Hospitality Properties (NYSE: RHP)
Ryman faces challenges due to disappointing demand in holiday-season business but continues to hold a strong portfolio in the real estate sector. The demand for group events is expected to rebound, which can positively influence future revenue streams. Additionally, with shares trading significantly below recent highs and offering a 5.4% dividend yield, it makes Ryman an attractive investment for long-term holders despite temporary setbacks.

In summary, while the current market presents uncertainties, savvy investors may find opportunities in GM, PayPal, and Ryman by capitalizing on their current undervaluation and growth prospects.

Stocks: GM PYPL RHP