2 Deep-Value Stocks I’m Buying Hand Over Fist in April 2025

By: Swarnalata

Published on: Apr 01, 2025

The S&P 500 has rebounded from its recent correction, but there are still undervalued stocks trading at bargain prices. While these companies face some challenges, their long-term growth potential makes them compelling buys for patient investors.

In this article, I’ll discuss two deeply undervalued stocks I’m aggressively adding to my portfolio in April: General Motors (NYSE: GM) and PayPal (NASDAQ: PYPL). Both stocks trade at discounted valuations and have strong catalysts that could drive a significant upside.

1. General Motors (GM): A Cheap Auto Stock with a Major Upside

Why GM Stock Is Undervalued

General Motors (NYSE: GM) took a hit after recent 25% tariffs on non-U.S.-made cars, as nearly 30% of its U.S. sales come from vehicles built in Canada or Mexico. However, this short-term headwind masks GM’s long-term potential.

Key Reasons to Buy GM Stock Now

✅ Dirt-Cheap Valuation: GM expects $11.50EPSin2025\ast \ast (midpointguidance).Eveniftariffsreduceprofitsby\ast \ast 20✅\ast \ast MassiveBuybacks\ast \ast :GMauthorizeda\ast \ast$6 billion stock repurchase plan, representing ~13% of its market cap—a strong signal of management’s confidence.
✅ EV Leadership: GM is a leader in U.S. electric vehicles (EVs), second only to Tesla. Most of its EVs are U.S.-made, reducing tariff risks.
✅ Cost Savings: Shutting down Cruise robotaxis saves $1 billion annually, allowing GM to focus on autonomous driving for personal vehicles.

Bottom Line

GM trades at just 4x forward earnings—an absurdly low multiple for a company with strong EV growth and profitability. If tariffs ease, GM could soar.

2. PayPal (PYPL): A Fintech Giant Trading at a Steep Discount

Why PYPL Stock Is a Bargain

PayPal (NASDAQ: PYPL) dropped after its Q4 earnings report, with investors concerned about slowing growth and margins. However, new management initiatives could reignite growth.

Key Reasons to Buy PYPL Stock Now

✅ Strong Financials: Despite slower revenue growth (+7% in 2024), PayPal grew adjusted EPS by 21% and generated 6.8 billion in free cash flow$6.8billioninfreecashflow\ast \ast .✅\ast \ast AggressiveBuybacks\ast \ast :PayPalhas\ast \ast$15.4 billion in cash and is repurchasing shares aggressively, adding $15 billion to its buyback program.
✅ High-Margin Growth Initiatives:

• Advertising Platform: Led by Uber’s former ad chief, this could be a major profit driver.


• Venmo Monetization: Still underutilized, Venmo offers huge revenue potential.


• Omnichannel & SMB Solutions: Expanding beyond checkout into business services.
  ✅ Attractive Valuation: PYPL trades at just 13x forward earnings, far below historical averages.

Management’s Long-Term Vision

PayPal’s leadership projects low-teens EPS growth by 2027, with potential for 20%+ long-term growth. At current prices, PYPL is a steal.

Final Thoughts: Should You Buy GM and PYPL?

Both GM and PYPL face short-term risks:

• GM could struggle if auto tariffs persist.


• PYPL may lag if consumer spending weakens.

However, for long-term investors, these stocks offer deep value at current prices. I’m buying both aggressively in April and holding for years.