It pays a more than 3% dividend yield and offers several sold-out models, including EV's. The F-150 pick-up truck acts like an annuity. No, Ford doesn't have the pizzazz of Tesla--but that is a good thing. Tesla's CEO, Musk, may have to sell a big chunk of his Tesla shares to buy Twitter.
Ford has a short term focus on the release of the EV F-150 Lightning. He prefers GM since they are building new electric vehicles from the ground up while Ford is retro-fitting an existing vehicle for the EV market. Also GM is planning several EV's at once and has a cheaper valuation.
(A Top Pick Jun 02/22, Down 13.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with F has triggered its stop at $12. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 15%, when combined with the previous buy recommendation.
Demand for their e-cars is strong even before they hit the street. He is optimistic about the car business given pent-up demand. Chop shortages will ease or end later this year.
He sold in the $20s, but is eager to buy back, because Ford makes a great product line, like the e-F150. Their e-car line-up is killing it. It trades at 7x earnings and pays over a 3% dividend.
Stockchase Research Editor: Michael O'Reilly We reiterate F as a TOP PICK. The company has received orders for 200,000 EV versions of its popular F150 truck. It trades at only 5x earnings and 1.2x book value. It pays a nice dividend backed by a payout ratio under 20% of cash flow. We like that it has been prudently using some cash reserves to aggressively retire debt early. We continue to recommend a $12 stop loss, looking to achieve $18.50 -- upside potential over 35%. Yield 2.9% (Analysts’ price target is $18.20)
F vs. GM vs. LNR Doesn't like the car companies. Very cyclical. Difficult environment to be both a combustion and an electric car company. Combustion division has to pay for the part that isn't making any money yet. For example, TSLA has a much easier environment, as electric is all they do. Parts makers are in better shape, as they supply all the car manufacturers.
It is moving in the EV and alternative energy direction. Stock has come off and is at 5 or 6X earnings which is the historical average. Has started delivering their electric pickup truck which costs 20% less to produce than the Tesla Model 3. Not keen on auto stocks since sales tend to be quite flat overall and therefore have little growth. On the other hand auto parts suppliers are growing. e.g. Linamar at 25%
Stockchase Research Editor: Michael O'Reilly Pandemic related supply chain issues have impacted the company, no doubt; however, indications last month show improvements are coming as expected. EV production is expected to hit 600,000 by end of 2023 - back on track. It trades at less than 10x earnings, compared to peers at 28x and is valued at just 1.2x book value. It has been drawing down some cash reserves, but has prudently used that to aggressively retire debt. We recommend setting a stop loss at $12.00, looking to achieve $20.50 -- upside potential over 40%. Yield 2.72% (Analysts’ price target is $20.23)
Reported after the bell today. They topped the street's earnings estimates and affirmed their full-year forecast despite supply shortages and hot inflation. The CEO said that the semi shortage may ease up in the second half of 2022. Yesterday, they launched the F150 Lightning, the electric version of their most popular pick-up truck. Demand is strong.
Biggest headline impact is the chips. Looking at it from a wider picture, the sector is focused on transitioning to EV. They'll all have to invest massive amounts of capex to gear up for the transition. Business economics are not appealing. Avoid Ford and the sector.
Will spin off its EV business EV has become sexy and fresh, like the electric F-150. It's an exciting time at Ford and the spin-off makes it particularly exciting. The CEO has been laser-focused on EVs. Can they produce EVs globally by 2026 and are there supply issues, ask investors? But you're buying Ford around 7.5x 2023 earnings--earnings that they historically have. That's the story and the tailwind, the multiple.
He sold it around the mid-$20s and is waiting to get back in. Pays a good dividend, but the economy is not that good right now. He wants to buy this back.
See previous narrative on GM. Ford acted better last week. The manufacturers are using cash flow from internal combustion system to fund EV development. The industry is going through massive changes and will survive with their valuations.. Prefers GM to Ford.
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