Ford (F) Intends to Expend $740M for Detroit Redevelopment
Ford Motor Company F intends to make another move in the self-driving vehicle front. Per Associated Press, this auto giant intends to spend around $740 million for the renovation of Detroit’s extensive vacant train depot and the redevelopment of other properties. The underlying aim is to foster the research and development of self-driving vehicles.
Notably, Ford is working on bringing autonomous vehicle technology to the market. The company will add several driver-assist technologies in its vehicles over the next five years. In June 2018, the company used the Michigan Central depot as a background, and laid out plans for the 105-year-old train station and surrounding Corktown neighborhood.
The company aims to redevelop the depot over the next several years. The station saw the last passenger train in 1988. The building was purchased by a businessman in the mid-1990s.
In July 2018, Ford reported second-quarter 2018 adjusted earnings per share of 27 cents, missing the Zacks Consensus Estimate of 31 cents per share. Results were impacted by challenges faced by the company in the China market and due to the North American production disruption. It logged automotive revenues of $35.9 billion, down from the prior-year quarter figure of $37.1 billion. Its Zacks Consensus Estimate for revenues was $35.5 billion.
Ford currently carries a Zacks Rank #5 (Strong Sell). In the past year, shares of Ford have underperformed the industry it belongs to. Over this time frame, shares of the company have plunged 11.2% while the industry edged down 0.7%.
A few better-ranked stocks in the auto space include Fox Factory Holding Corp. FOXF, PACCAR Inc. PCAR and AB Volvo VLVLY. While both Fox Factory and PACCAR sport a Zacks Rank #1 (Strong Buy), Volvo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 74.6% over the past year.
PACCAR has an expected long-term growth rate of 10.8%. Over the past month, shares of the company have moved up 2%.
AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have gained 52.3%.
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