Ford Motor (F) began the caller decennary with optimism arsenic it emerged from a cardinal firm redesign to vie successful the epoch of astute vehicles and cleanable energy. The automaker is investing heavy successful caller technologies to support gait with competitors successful the markets for autonomous vehicles, thrust sharing and electric cars. But is Ford banal a bargain now?
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The unveiling of the Mustang Mach-E successful November 2019 was a cardinal milestone successful the company's pivot toward what it called "the integer future." The Ford Mustang Mach-E, an all-electric crossover, made its commercialized debut successful the U.S. precocious past year. Ford is opening accumulation of the Mach-E, a rival to the Tesla (TSLA) Model Y, successful China arsenic well. And Ford didn't halt astatine electrification with a crossover — it present has an electrical mentation of the F-150 coming aboriginal adjacent year.
After a prolonged downtrend, Ford banal is revving up on with adjacent General Motors (GM). But wherever does Ford basal now? If you're reasoning astir buying shares, it's cardinal to analyse the cardinal and method representation first.
Ford Stock Earnings
Ford net for the 3rd 4th are owed Oct. 27. Wall Street expects Ford banal to gain 26 cents per share, a 60% driblet from a twelvemonth ago. Revenue is projected to borderline up 0.4% to $37.659 billion, according to FactSet.
EV Sales On The Rise
Ford's monthly car sales continued their diminution successful September. Overall U.S. income dropped 17.7% to 156,614 vehicles. Truck income skidded 22.6% portion car income sank 80%. However, Ford remained the top-selling U.S. automaker contempt the income slump. Ford banal rose.
One agleam spot for Ford? EV income deed a grounds for the period of September with 9,150 vehicles. That's a 91.6% year-over-year increase. Ford besides reported that preorders for the highly anticipated electrical F-150 surpassed 150,000 reservations.
Preproduction of Ford's afloat electrical F-150 Lightning exemplary started successful September. The institution expects the EV F-150 volition beryllium disposable to the nationalist successful Spring 2022.
The caller exemplary volition vie amid a increasing marketplace lineup of electrical pickups. In summation to Tesla's (TSLA) heavy publicized Cybertruck, GMC and Chevy besides person announced plans to merchandise electrical versions of the Hummer and Silverado motortruck models, respectively.
A Rivian EV pickup launched successful precocious September, with GM's Hummer EV owed retired aboriginal this year. The Tesla Cybertruck is expected to motorboat successful precocious 2022, but with measurement accumulation not until 2023.
Ford Stock Rises On EV Battery Plant Deal
On Sept. 28 Ford announced a woody with battery partner SK Innovation to physique caller EV and artillery plants. CEO Jim Farley called the $11.4 cardinal woody 1 of Ford's "biggest investments ever" successful a statement. Ford joins GM and Volvo arsenic the latest automaker to bring artillery accumulation in-house arsenic they question to situation rival Tesla.
The caller "mega-sites" volition nutrient electrical versions of Ford's top-selling F-Series trucks, according to a release. They besides volition marque batteries for aboriginal Ford and Lincoln electrical vehicles. Production is acceptable to statesman successful 2025. Ford banal roseate connected the news.
Earlier this month, Ford inked a woody with Redwood Materials to recycle materials from utilized artillery packs. The Sept. 22 woody helped assistance Ford banal astir 4% connected the day.
Ford's spending related to EV initiatives is expected to turn to much than $30 cardinal by 2025. In July, Ford snagged Car and Driver's 2021 EV of the Year award. The magazine, which publishes an yearly database of champion autos, singled retired the Mustang Mach-E arsenic its apical prime successful the electric car category.
Ford, Walmart Partner On Self-Driving Cars
Ford and Walmart (WMT) announced the investigating of autonomous-vehicle transportation services successful 3 cities connected Sept. 15.
The big-box retailer volition deploy Ford Escape SUV hybrids augmented with Argo AI technology. Ford invested $1 cardinal successful Argo successful 2017. Initial investigating volition commencement successful Miami, Austin and Washington, D.C., aboriginal this year. The companies said the autonomous transportation work volition beryllium disposable astatine archetypal wrong defined work areas of the 3 cities, with plans to expand.
Ford Stock Fundamental Analysis
To find whether Ford banal is simply a bargain now, cardinal and method investigation is key.
The IBD Stock Checkup tool shows Ford banal has an IBD Composite Rating of 97 retired of a best-possible 99. The standing means Ford banal ranks comparatively good vs. each stocks, but not outstanding, successful presumption of the astir important cardinal and method stock-picking criteria.
Ford banal has an EPS Rating of 66 retired of 99, which compares quarterly and yearly earnings-per-share maturation with each different stocks. While that people could beryllium better, it has improved since the past quarterly report. Ford has a spotty net way record, with galore quarters of net declines implicit the past decade. But forward-looking estimates are pointing to growth.
The rankings spot the carmaker successful the No. 2 spot vs. its automotive manufacture peers. IBD's automaker radical is ranked a beardown No. 50 retired of the 197 manufacture groups tracked by IBD. In general, it's perfect to absorption connected apical stocks successful the apical quartile of IBD's groups, and the radical has improved from a near-worst ranking conscionable months agone to articulation the apical 50.
Ford Stock Technical Analysis
Ford banal is making a large determination disconnected its August and September lows. EV artillery production-related headlines helped assistance Ford shares supra their downward-sloping 50-day line. Ford precocious tested a breakout supra a cup base bargain constituent of 16.55. The banal is present pulling backmost and perchance forming a grip heading into earnings.
The erstwhile precocious of 14.79 was a absorption level for Ford stock, with it hitting that constituent connected July 29 and Oct. 4. A beardown summation connected Oct. 7 fueled Ford supra that level, marking a buying opportunity.
An adjacent earlier introduction for investors could've been erstwhile shares cleared a declining-tops inclination enactment successful precocious September. That coincided with Ford banal getting backmost supra its 50-day line.
Consider Ford's Relative Strength
Ford's comparative spot enactment — which measures a stock's terms show vs. the S&P 500 — is heading higher, but is inactive beneath highs that coincided with the stock's highest of 16.45 successful June.
IBD's probe shows the value of focusing connected stocks outperforming the market. Investors should support an oculus connected Ford's show vs. the S&P 500 arsenic it looks to get backmost to new-high territory.
Ford Stock: A Buy Now?
On a monthly chart, Ford banal is breaking supra its semipermanent downtrend going backmost to 1999. Looking astatine the play chart, shares person made a large determination disconnected 2020 lows. Ford banal is present moving connected a caller base.
As for the fundamentals, Ford income and profits are rebounding. The institution is moving much into electrical vehicles, too. However, a spot shortage are weighing connected Ford and the full car industry.
Bottom line: Ford banal is present extended from the 5% bargain portion from a 14.89 entry. That level was considered an introduction constituent for investors, with Ford hitting absorption astatine 14.79 respective times implicit the past fewer months. With net connected the horizon, existent shareholders should measure whether they person a nett cushion of astatine slightest 5% heading into the report.
For those looking for a caller buy, hold until aft the study connected Oct. 27 to spot if Ford tin interruption retired connected earnings. Traders tin besides look astatine IBD's earnings enactment strategy to headdress downside hazard heading into the results.
To find the champion stocks to bargain and watch, cheque retired IBD's Stock Lists page. More banal ideas tin beryllium recovered connected our Leaderboard and MarketSmith platforms.
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