AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know
Ford Motor Company F announced the production restart of its F-150 pickup truck at its Dearborn, MI facility on Friday. While the production of the same model will resume at its facility in Kansas City, MO and its F-series truck hub in Louisville, KY on Monday.
The production of the F-150 truck was stopped on May 7. An explosion on May 2 at its parts supplier, Meridian Magnesium plant, led to a shortage of parts for manufacturing the F-150 pickup trucks. The disaster at Eaton Rapids, MI hub caused major manufacturing disturbance in the automotive industry, forcing many automakers to make alterations or halt production.
In order to help Meridian from the disaster, Ford, along with suppliers and contractors, removed 19 dies from the damaged facility. This included shifting an 87,000-pound die from Eaton Rapids to Nottingham, U.K. by using one of the largest cargo planes, Antonov. A die is a tool that is used to cut or shape material, using a press. The company also examined and repaired dies to restart the production at Meridian Magnesium’s Eaton Rapids facility.
Ford Motor Company Price and Consensus
Ford Motor Company Price and Consensus | Ford Motor Company Quote
The best-selling vehicle of the United States, F-150 full-size pickup truck generated revenues of $41 billion in 2017. The figure comprised of roughly 28% of Ford’s total sales and also contributed a major share in profits. For second-quarter 2018, the company anticipated an adverse impact of 12-14 cents per share due to the production halt. Further, this led to temporary laying-off of workers from the company’s three plants that manufacture the pickup truck.
Over a month, Ford’s stock has inched up 0.6%, outperforming 4.1% decline of the industry it belongs to.
Zacks Rank & Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. MGA, General Motors Company GM and Ferrari N.V. RACE. Magna and General Motors carry a Zacks Rank #2 (Buy) while Ferrari sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Magna has an expected long-term growth rate of 8.5%. In a year’s time, shares of the company have gained 49.3%.
General Motors has an expected long-term growth rate of 5.5%. Shares of the company have risen 17.1% over the past year.
Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 58.9% over the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Magna International Inc. (MGA) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research