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Ford Motor Company (F), headquartered in Dearborn, Michigan, is a major player in the U.S. automotive industry. Valued at $47.67 billion by market cap, Ford is pivotal in the automotive sector, producing a diverse lineup of vehicles that include cars, trucks, and SUVs known for their innovation, reliability, and performance. Competing with rivals such as General Motors Company (GM), Ford continues to drive advancements in electric vehicles and autonomous driving technologies.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Ford exemplifies this category, signifying its substantial size, stability, and influence in the automotive industry. Ford remains a key player in the global automotive market by continually expanding its vehicle lineup and driving innovation in electric and autonomous driving technologies.
Shares of F have dropped 22.6% from their 52-week high of $15.42, reached on Jul. 12, 2023. Over the past three months, F's shares have declined 7.4%, underperforming the broader Nasdaq Composite ($NASX), which gained 8.3% during the same period.
Longer term, F is down 2.1% on a YTD basis and the shares have declined 16% over the past 52 weeks. In comparison, the Nasdaq is up 18.1% in 2024 and 29.7% over the past year.
To confirm the recent bearish price trend, F has been trading below its 50-day moving average since late April.
Ford's recent underperformance relative to the broader index is due to intense competition and disappointing financial results, exacerbated by car recalls impacting investor sentiment. However, on April 24, shares of Ford Motor rose by 3% following positive reactions to its Q1 earnings report. Despite challenges in the combustion engine and electric vehicle sectors, Ford Pro's strong performance and better-than-expected adjusted earnings per share boosted investor enthusiasm.
Highlighting the contrast in performance, rival GM has outperformed F and Nasdaq, gaining 33% on a YTD basis.
Analysts are optimistic about F's prospects despite its recent underperformance compared to NASX. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $13.88 reflects a 16.2% premium over current levels.
On the date of publication, Rashmi Kumari 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.
