
There has been a notable divergence in the price action of auto stocks in 2023. While pure-play electric vehicle (EV) names have done quite well, with Tesla (TSLA) more than doubling year-to-date, legacy automakers like Ford (F) and General Motors (GM) have been less impressive. GM is underperforming the S&P 500 ($SPX) in 2023, and Ford's year-to-date performance is right in line with the S&P.
However, not only did Ford and General Motors post better-than-expected Q2 earnings, both automakers raised their respective 2023 guidance, as well. Still, the results didn't impress investors, and both stocks fell after earnings. Following the pullback, I believe that Ford stock looks like a buy at these levels, as it looks attractively priced after the recent underperformance.