|Bid||0.00 x 900|
|Ask||0.00 x 900|
|Day's Range||8.52 - 8.67|
|52 Week Range||7.41 - 12.15|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||9.28|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||0.60 (6.90%)|
|1y Target Est||9.27|
Last month we posted on the discovery that Ford's 7.3-liter "Godzilla" V8 designed for Super Duty pickups fits in the F-150 Raptor and Mustang. The Rebel TRX has been predicted to arrive in a Hellcat tune above 700 horsepower in 2020.
It's been a very busy week for the automakers and the future of the industry. On Friday, General Motors announced that it would sink a $1.8 billion investment "in its U.S. manufacturing operations across six states, adding a total of 700 new jobs." The move comes following plenty of backlash from various political leaders -- including President Trump -- as well as the UAW after GM announced a large cutback in late 2018. Of the $1.8 billion, $300 million will be allocated to its assembly plant in Orion Township, Mich., where the company plans to build a new electric vehicle alongside its Bolt EV.
Shares have U.S. auto giant Ford (NYSE:F) have been in a secular decline for several years now. Five years ago, this was a $17 stock. Today, Ford stock trades hands at $8, down more than 50% over the past five years while the S&P 500 has rallied over 50%.Source: Barbara Eckstein via FlickrThere are many reasons why Ford stock has underperformed the market by 100 points over the past five years. Those reasons include an unusual drop in car ownership rates, broad weakness across the entire U.S. auto market, and Ford pivoting too slowly into the secular growth electric vehicle (EV) space, among other things.The sum of those headwinds has caused Ford's sales to fall flat, margins to compress, and profits to drop. That triple whammy has led to a 50% haircut in Ford stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter Most of these headwinds will persist. Car ownership rates will continue to drop as the sharing economy grows in popularity. The U.S. auto market will consequently remain weak. Ford will continue to cede market share to more EV-focused peers like Tesla (NASDAQ:TSLA).As such, Ford's growth fundamentals going forward aren't great, and you won't see Ford re-take its $17-plus five year highs anytime soon. But, Ford stock is too cheap for its own good, and the growth fundamentals are good enough to support a rally towards $10 in 2019.Consequently, Ford stock looks good here. It's way too beaten up, and as Ford pivots into the EV space and improves profitability, the stock should rebound nicely in 2019. Ford Faces Secular ChallengesMake no mistake about it. Ford faces some serious secular challenges over the next several years. Those challenges include:* Car ownership rates will continue to drop as the need to own a car for urban residents drops thanks to the rise of the sharing economy and ride-sharing services. This will shrink the overall U.S. auto market, and have an adverse impact on Ford's unit sales.* Ford's market share in that shrinking auto market will drop, as EV competition ramps and competitors like Tesla expand their product line-up and gobble up share in the auto market.* Average sales prices on vehicles will rise, but gains will be capped by competition-related and share erosion headwinds, and that will cap potential margin upside, too.* Amid all these challenges, Ford's giant debt load will become increasingly unattractive.As such, Ford's growth outlook over the next several years isn't great. Unit volumes will drop. Market share will drop. ASP growth will be limited. Margin expansion will be limited. Profit growth won't be great.With all those headwinds, it's easy to see why investors don't want to buy Ford stock here and now. But, the bear thesis on F stock ignores one critical element that makes all the difference: valuation. The Stock Is Too CheapFord is slated to do about $1.20 in EPS this year. Ford changes hands around $8.50. That means it is trading at just 7-times forward earnings.That's too cheap for Ford. Sure, there are a bunch of headwinds here which will keep revenue and profit growth relatively muted over the next several years. But, that doesn't mean there will be no growth. Instead, Ford will increasingly pivot into the EV space and grow share in that space. This pivot should help keep revenue growth in the low single-digit range over the next several years. * The 10 Best ETFs to Buy in the Second Quarter Simultaneously, Ford will downsize operations and cut costs, which should help push EBIT margins materially higher over the next several years from today's depressed base.Overall, despite secular challenges, Ford still projects as a low single-digit revenue growth company with tepid margin upside over the next several years.Modeling that out, it becomes clear that Ford can do about $2.50 in EPS by fiscal 2025. Based on a historically average 7 forward multiple, that equates to a fiscal 2024 price target for F stock of $17.50. Discounted back by 10% per year, that equates to a fiscal 2019 price target of nearly $11.As such, upside in Ford stock looks good here, thanks both to an anemic valuation and revenue and margin upside potential over the next several years. Bottom Line on Ford StockFord faces big challenges in the coming years. But, all those big challenges are already priced into the stock. What isn't priced into the stock, however, is potential revenue upside through an EV pivot. Potential margin upside through cost-cutting measures also isn't priced in.As such, at current levels, all the bad but very little good is priced into Ford stock. That makes for a favorable set-up for bulls.As of this writing, Luke Lango was long F and TSLA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Ford Stock Is a Screaming Buy At Current Prices appeared first on InvestorPlace.
Does GM Have Good Potential despite Trump’s Criticism?(Continued from Prior Part)GM’s EV-to-EBITDA As of March 20, General Motors’ (GM) forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple was 8.5x, much lower than its direct peer Ford
Does GM Have Good Potential despite Trump’s Criticism?(Continued from Prior Part)General MotorsIn this series so far, we’ve analyzed the recent trend in General Motors’ (GM) earnings, revenues, and profit margins. The company has managed to
Does GM Have Good Potential despite Trump’s Criticism?(Continued from Prior Part)General Motors’ focus on profitability In 2018, a positive mix helped General Motors (GM) boost its revenue despite its declining sales volumes. GM was one of the
There’s been a whole lot of turnover in executive suites at auto makers in recent years. The latest new face: incoming Ford chief financial officer Tim Stone.
The largest U.S. automaker is expected to announce it plans to build a new electric compact vehicle for Chevy, said the people, who asked not to be identified. GM executives also will formally endorse a revised North American free trade deal known as USMCA, the sources said. GM declined to comment.
Technology stocks surged on Thursday, leading Wall Street higher as jitters over the Federal Reserve's warning of an economic slowdown were allayed by upbeat economic data. All three major U.S. stock indexes were in the black, with the Nasdaq set to post its fifth straight advance and the benchmark S&P 500 less than 3 percent below its all-time high set in September. On Wednesday, the Fed surprised investors with a policy statement that was more dovish than expected, as it forecast no further interest rate hikes this year due to signs of softness in the U.S. economy.
Does GM Have Good Potential despite Trump’s Criticism?(Continued from Prior Part)General Motors’ revenue In the fourth quarter of 2018, General Motors’ (GM) revenue rose 1.8% YoY (year-over-year) to $38.4 billion. While the company’s revenue
Ford Motor Co. (NYSE: F) confirmed Thursday it has hired longtime former Amazon.com Inc. (NASDAQ: AMZN) executive Tim Stone to be the automaker’s chief financial officer, replacing Ford veteran Bob Shanks, who is retiring later this year. Stone, 52, comes to Ford from Snap Inc. (NYSE: SNAP), where he had been CFO since last year.
Ken Block and his team recently kicked off the Cossie World Tour at Block's favorite rally in America, Missouri's 100-Acre Wood. Block has had major success at this race in the past, but unfortunately, this year's contest ended with a participation ribbon rather than a podium finish. Only weeks after debuting his all-new Ford Escort RS Escort, Block points out early in this video that the Cossie V2 only had about 40 miles on the clock.
Ford Motor Co. new chief financial officer Tim Stone, who will succeed retiring CFO Bob Shanks on June 1, will "certainly need to learn the business," but there are positives from his background, analysts at RBC said in a note Thursday. Before Stone's brief stint as CFO of Snap Inc. , he worked in finance at Amazon.com Inc. for 20 years. A "fair criticism of Ford over the years has been that the organization is bureaucratic and home-bred," the analysts said. Chief Executive Jim Hackett has made it a point to try and change the culture "and Stone clearly comes from organizations that have historically moved faster," they said. Moreover, "his experience at Amazon could lend some insight into both Ford's core business ... as well as Ford's auto 2.0 initiatives," the analysts said. Ford announced Shanks' retirement and Stone's appointment earlier Thursday. Shares of Ford rose 1.5% in midday trading. The stock has lost 22% in the past 12 months, which contrasts with gains around 5% for the S&P 500 index in the same period.
Stone, 52, replaces Bob Shanks, who will retire at the end of 2019 after serving the company for 42 years. Stone held various financial roles at Amazon for two decades, and was most recently CFO of Snapchat messaging app owner, Snap Inc. Stone will take over as CFO on June 1, Ford said.
It also fits with Ford’s direction: Earlier this week, the company announced it was boosting production of SUVs for the second time in two years. Plus, it’s been almost a year since Ford said it was effectively exiting cars, apart from a couple of brands, including the Mustang. Ford isn’t alone in going all-in on “big.” Fiat Chrysler Automobiles NV went that way with its North American business in 2016.
Ford Motor Co. said its chief financial officer, Bob Shanks, will retire in December, capping a 42-year career at the automaker.
Chief Financial Officer Bob Shanks will retire from the automaker at the end of 2019. Shanks has been with the company since 1977 and has served as finance chief and executive vice president since 2012. Tim Stone, a former Amazon.com executive and former chief financial officer of Snap, will succeed Shanks, effective June 1.
Yahoo Finance's Adam Shapiro highlights today's headlines with 'News on the Move' as Ford Motor CFO is set to retire and President Trump gets criticized over John McCain remarks etc.
After 34 years as a private company, Levi Strauss returned to the NYSE this morning. Yahoo Finance’s Dan Roberts, Akiko Fujita, Sibile Marcellus, and Brian Sozzi discuss the retailer’s big valuation.