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Valued at $43.2 billion by market cap, Ford Motor Company (F) operates in the automotive sector. Based in Dearborn, Michigan, it designs, manufactures, and services a broad range of vehicles, including cars, trucks, SUVs, and luxury models, while also providing vehicle financing and mobility solutions.
Shares of Ford Motor have lagged behind the broader market over the past 52 weeks. F has declined 20.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19%. In 2024, shares of Ford Motor's stock fell 12.3%, underperforming SPX's 14.2% gain on a YTD basis.
Zooming in further, F stock has also underperformed compared to the Nasdaq Transportation ETF's (FTXR), which has declined 1.9% over the past 52 weeks.
Ford Motor has underperformed due to slower-than-expected recovery in its key Blue segment, which has been impacted by manufacturing delays with the new 2024 F-150 pickup truck. Additionally, broader market challenges, including declining car prices and weakening consumer confidence, have negatively affected the company's stock performance. Furthermore, the stock plunged 18.4% on Jul. 25 due to a disappointing Q2 earnings report where profits fell short of expectations despite higher revenue. The shortfall was mainly due to increased warranty reserves, which squeezed profit margins and highlighted issues with vehicle quality.
For the current fiscal year, ending in December, analysts expect F's EPS to decline 3.5% year over year to $1.94. The company's earnings surprise history is mixed. It surpassed the consensus forecast in two of the past four quarters while missing on two other occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, nine “Holds,” and two “Strong Sells.”
This configuration is slightly more bullish than three months before, with six analysts suggesting a "Strong Buy."
On Jul. 25, Bank of America's (BAC) analyst John Murphy reiterated a "Buy" rating on Ford Motor but reduced the price target to $20, which is also the Street-high target for the stock. This implies a potential upside of 87.1% from the current price levels.
The mean price target of $14.05 represents a premium of 31.4% to F's current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
