Ford Motor today
Ford Motor
As of 01/13/2025 15:58 Eastern
- 52 week range
- $9.49
▼
$14.85
- Dividend yield
- 6.18%
- P/E ratio
- 11.03
- Target price
- $11.83
Ford Motor Company. New York Stock Exchange: F is the second largest automaker in the United States after General Motors Inc. New York Stock Exchange: CEO. Business began to recover as inventories improved following the easing of supply chain issues in 2024, but shares continued to underperform, falling 16%. The stock has been an underperformer for over a decade, returning only 10% compared to the S&P 500 during that time, with a total return of 250%. The auto, tire and truck giant also had 62 recalls in 2024, twice as many as GM.
Despite $1.5 Billion Loss, Ford Resolutely Maintains Its EV Strategy
Its entry into the electric vehicle (EV) market has proven to be a money-burning pit as Tesla Inc. NASDAQ:TSLA and even Rivian Motor Inc. NASDAQ: RIVN continue to surpass it. Ford should support Trump’s proposal charge duties up to 25% on imports. Despite projected annual losses of $1.5 billion in the EV segment, the company remains steadfast in its EV strategy.
Ford CEO Jim Farley was adamant that their EV strategy remains unchanged: “Since the first quarter of last year, EV sales are up 35% while total revenue remains flat at $14 billion. This means that prices have fully offset progress in volume. We” We expect approximately 150 new electric vehicles to be available in North America by the end of 2026. And some of our competitors are already using very aggressive leasing tactics even on brand new products, which creates huge residual costs. risk, overhang and brand damage.”
Strong Q3 Growth and Strong Growth for Ford Pro Business
Ford reported third-quarter 2024 earnings per share of 49 cents, beating analysts’ consensus estimate of 46 cents by 3 cents. Revenue rose 5.5% year over year to $46.2 billion, beating the consensus estimate of $45.13 billion. North American sales rose 8% year over year, driven by new trucks and SUVs, helping Ford gain share US market by 40 bp. up to 12.6%. Global hybrid vehicle sales grew 30% year-on-year as the share of hybrid vehicles reaches 9% in 2024.
Revenue from commercial vehicles and Ford Pro electric vehicles and services rose 13% YoY to $15.7 billion, with EBIT of $1.8 billion on a margin of 11.6%. Ford Pro Intelligence is the software platform that powers Ford Pro Digital Services. The number of paid software subscriptions grew by 30% compared to last year to about 630,000 users.
Ford’s Model E electric vehicle segment reported an earnings before interest and tax (EBIT) loss of $1.2 billion. Year-over-year cost improvements of $500 million were offset by industry-wide pricing pressures. The segment continues to improve its earnings trajectory, achieving cost savings of $1 billion in 2024.
Prospects for 2024
Ford expects 2024 adjusted EBIT to be $10 billion, compared with forecasts of $10 billion to $12 billion, and adjusted free cash flow to be between $7.5 billion and $8.5 billion. Capital expenditures (CapEx) are expected to be US$8 billion to US$8.5 billion, down from US$8 billion to US$9 billion. Ford Pro is expected to have annual EBIT of about $9 billion, Ford Blue to be about $5 billion, and Model ea to have an annual loss of about $5 billion. Ford Credit’s EBIT is expected to be approximately $1.6 billion.
Stock F forms a descending triangle pattern
A descending triangle is typically a bearish chart indicator with lower highs bouncing off flat bottom support. The descending upper trend line converges with the flat lower horizontal support line of the lower trend line at the top point. A breakout is triggered if the stock falls below the lower support of the trend line. A breakout occurs if the stock rises above the upper resistance line.
F shares formed descending upper trendline resistance at the $14.79 Fib, coinciding with flat lower trendline support at the $9.52 Fib. The channel becomes smaller as it approaches the apex point. Daily fixed resistance VWAP is slowly falling towards the $10.55 level. The daily RSI is approaching the 35 band. Fibonacci (Fibonacci retracement support levels are at $9.53, $8.89, $8.43 and $7.74.
The average consensus price target for F shares is $11.83which implies a growth potential of 22.5%. and his highest analyst price target is at US$18. It has three analyst ratings of Buy, seven ratings of Hold, and four ratings of Sell. The short interest on the stock is 2.85%.
Actionable Option Strategies: Bullish investors may consider using cash-backed puts at Fibonacci retracement support levels to buy the dip. If the stock is allocated, then writing a covered call at the upper Fibonacci levels implements a wheel strategy to generate income on top of the massive 6.21% dividend yield.
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