Deep cyclical. Auto sales were tough in 2022. Be careful. Definite value at 5-6x earnings, but don't be caught just looking at the value. One name he's watching is MBGYY.
Markup, 50% retracement, and now trading in a triangle consolidation pattern. Next move will be a breakout to either the upside or the downside. Thinks it'll be to the upside. Likes reward/risk here. If it breaks out above resistance, confirms you're seeing higher highs and higher lows, and that's quite positive.
Stockchase Research Editor: Michael O'Reilly With earnings up 25% from a year ago, including a strong EV division, we again reiterate F as a TOP PICK. EV sales are second only to TSLA in the US -- up 126% on the year. It trades at 6x earnings, compared to peers at 20x, and at 1.1x book value. The dividend yield is good backed by a payout ratio under 30% of cash flow. Recent quarterly earnings reveal the company has been able to increase cash reserves while continuing to retire debt. We continue to recommend a stop-loss at $11, looking to achieve $18 -- upside potential over 45%. Yield 5.0% (Analysts’ price target is $17.84)
EPS will fall in the coming years, at a 7x 2024 PE. A very cheap stock, demand is strong and Ford has raised their free cash flow forecast. He doesn't see growth, though.
Cheap. He owns auto parts companies in Canada. Volkswagen is a much better opportunity for a value investor. VOW is growing rapidly in EV space, one of the global leaders, owns parts of luxury brands.
Stockchase Research Editor: Michael O'Reilly With quarterly sales up 12% from a year ago, including a strong EV division, we reiterate F as a TOP PICK. It trades at 6x earnings, compared to peers at 9x and at 1.2x book value. The dividend yield is good backed by a payout ratio under 30% of cash flow. Recent quarterly earnings reveal the company has been able to increase cash reserves while continuing to retire debt and buy back shares. We recommend trailing up the stop (from $6) to $11, looking to achieve $18 -- upside potential over 34%. Yield 4.5% (Analysts’ price target is $17.82)
Low valuation, possible value trap. Very cyclical. Down 51% from highs. Too early to look at, given rising cost of borrowing and supply chain issues. For consumer discretionary, he'd stick with the restaurants. See his Top Picks.
Stockchase Research Editor: Michael O'Reilly With EV sales up 200% and a competitive advantage over other auto manufacturers, F is a TOP PICK. Recently reported earnings beat expectations by 50%, supporting a ROE of 16%. It trades under book value. The dividend yield is good backed by a payout ratio under 25% of cash flow. The company has been prudently using some cash reserves to aggressively retire debt. We would buy this with a stop-loss at $6, looking to achieve $18 -- upside potential over 53%. Yield 4.9% (Analysts’ price target is $17.77)
Ford has a refreshed offering, even more so than GM, but doesn't operate as efficiently as GM. Cost base is less efficient, operating margins are much lower. He owns GM.
Ford: It's a supply chain problem. If the problem was solved, shares would hit $20, not $12 now. GM is a play on EV's. They've spent a lot on EV's but don't get credit for it. But there's a lot less volatility with GM than Tesla in the EV space. GM is hiring a ton of young, smart engineers and pouring a lot of capex. Over time, they will be a big player in EV's, which will be affordable.
Could break out this year. It's finally getting over a multi-year parts shortage that's hampered production. Costs have down a lot in recent months. They boast an exciting line of EVs. Yes, they laid off white-collar workers, but this will help their bottom line.
F vs. GM Auto production is increasing, and F and GM will be two of the biggest beneficiaries of that. We're in a strong market where we need to replenish inventory. Both have pulled back with economic and inflation worries. A good trade in both these names. He'd favour F over GM, as he likes their lineup as they pivot to EVs. He owns LNR instead.
Allan Tong’s Discover Picks EV’s remain a fast-growing segment in autos, and Ford is wise enough to invest heavily in it by building an assembly plant in Ohio. The company grew 5.6% in the past year and is expected to maintain that pace in the coming year. Last month’s quarter was strong enough to support a 50% increase in the dividend, now paying 3.95% at a low 10.47% payout ratio. Shares themselves are still trading very low, at a 5x PE above $15. That marks a $4 jump from a month ago, when the market was evacuating Ford like a sinking ship. Those fears were overblown. In fact, Wall Street puts the forward PE at 7.15x though. Read 3 Recession Proof Stocks for our full analysis.
Got way overdone and way too cheap. Yesterday, they just blew it away. Feeling inflation, but reiterated full-year outlook. Raised dividend. Extraordinarily cheap, 5.7x 2023, with a 5.6% growth rate. So it sets up very well on price to growth. If we're going straight into a recession, don't buy. But if you think recession 50/50 over the next 2 years, good name to buy now.
They reported a super quarter with much better than expected sales, earnings and cash flow. Also, management reiterated their full-year forecast and raised their dividend by 50%. Shares rallied 5% earlier today.
Ford Motor is a American stock, trading under the symbol F (previously F-N on Stockchase) on the New York Stock Exchange (F). It is usually referred to as NYSE:F or F