/Ford%20Motor%20Co_%20logo%20by-%20Vera%20Tikhonova%20via%20iStock.jpg)
Ford Motor Company (F), headquartered in Dearborn, Michigan, develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles. Valued at $40.1 billion by market cap, the company also provides vehicle-related financing, leasing, and insurance.
Shares of this auto giant have underperformed the broader market considerably over the past year. F has declined 14.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. In 2025, F stock is up 1.8%, compared to the SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, F’s underperformance looks less pronounced compared to the First Trust Nasdaq Transportation ETF (FTXR). The exchange-traded fund has gained about 17.9% over the past year. Moreover, the ETF’s 2.5% gains on a YTD basis outshine the stock’s returns over the same time frame.
Ford is underperforming due to significant losses in their Model e business, steep warranty costs, quality issues with older models, and softer EV demand in the industry. The lack of a competitive advantage and struggles in managing warranty expenses have added to investor concern. Despite efforts to address these issues, Ford may continue to face elevated warranty expenses for some time. The automaker has cut its full-year 2024 EBIT and EPS forecast, citing higher inflation, increased material prices, and cost pressures due to its joint venture in Turkey.
On Oct. 28, F shares closed up more than 2% after reporting its Q3 results. Its revenue of $46.2 billion beat analyst estimates of $42.3 billion. The company’s adjusted EPS was $0.49, surpassing analyst estimates of $0.47.
For the current fiscal year, ended in December 2024, analysts expect F’s EPS to decline 11.4% to $1.78 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 19 analysts covering F stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 11 “Holds,” one “Moderate Sell,” and four “Strong Sells.”
This configuration is less bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Jan. 24, Bank of America Securities analyst John Murphy maintained a “Buy” rating on F with a price target of $19, implying a potential upside of 88.5% from current levels.
The mean price target of $10.79 represents a 7% premium to F’s current price levels.
