Dearborn, Michigan-based Ford Motor Company (F), with a market cap of $49 billion, is a global leader in automotive design, manufacturing, and mobility solutions. Established in 1903 by Henry Ford, it is a key player among Detroit's “Big Three,” renowned for its Ford and Lincoln vehicles, including Mustang, F-Series trucks, and Explorer SUVs.
Shares of the auto giant have considerably underperformed the broader market over the past 52 weeks. F has gained 6.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.5%. In 2024, Ford stock is up marginally, compared to SPX's 11.2% gains on a YTD basis.
Zooming in further, F is edging slightly ahead of the Global X Autonomous & Electric Vehicles ETF’s (DRIV) 6.5% gains over the past 52 weeks.
Ford's underperformance against the broader index is linked to intense industry competition and lackluster financial results. Additionally, car recalls, fatal crashes related to Ford Blue Cruise, and costly labor strikes have weighed on investor sentiment.
However, shares of Ford Motor rose 3% on April 24, fueled by upbeat reactions to its Q1 earnings. Despite hurdles in the combustion engine and electric vehicle sectors, strong performance from Ford Pro and better-than-expected adjusted earnings per share drove investor enthusiasm.
For the current fiscal year, ending in December, analysts expect F to report EPS to decline 2.5% to $1.96. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.
Among the 18 analysts covering F stock, the consensus rating is "Hold," based on six "Strong Buy" ratings, one "Moderate Buy," eight "Holds," and three "Strong Sells."
This configuration has been almost consistent but appears slightly more bullish than two months before, with five analysts suggesting a "Strong Buy" rating.
Recently, Citigroup's (C) analyst Itay Michaeli increased his price target for Ford Motor from $16 to $18. Michaeli's optimistic stance was driven by Ford Pro's consistent performance, management's positive outlook on future growth, and the introduction of cost-effective product launches.
The mean price target of $13.86 represents a premium of 12.9% to F's current levels. However, the Street-high price target of $21 suggests an ambitious upside potential of 71%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
