Ford Motor Company (F) has been attracting investor attention recently, and it's worth considering some key factors that may impact its near-term performance.
Over the past two weeks, Ford's stock has outperformed the market, with a return of +18% compared to the S&P 500 composite's +3.8% change.
Technical Analysis
If you are a trader, you want to be very precise and methodical when applying your entries and exit strategies. With regards to Ford's shares, price has been building a base above $11 for almost a year. Today, price broke above the multi-month resistance (now support) at $13. If this level continues to hold, we could expect price to move higher over the course of the next few weeks.
Check Out Video --> F Price Analysis
Fundamental Analysis
If you are an investor, when evaluating a company's stock, it's important to consider the fundamental facts that ultimately influence long-term investment decisions, rather than getting caught up in current price action, media releases or rumors that can lead to short-term price changes. One crucial factor to examine is the change in a company's future earnings projection, as it determines the fair value of its stock. When earnings estimates increase, the fair value of the stock rises, generating investor interest and driving the price higher. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Ford is expected to post earnings of $0.46 per share for the current quarter, with a year-over-year change of -32.4%. The consensus estimate for the current fiscal year is $1.74 per share, representing a year-over-year change of -7.5%. Looking ahead to the next fiscal year, the consensus estimate is $1.70 per share, indicating a change of -1.9%.
Revenue growth is another crucial aspect. Ford's consensus sales estimate for the current quarter is $39.99 billion, with a year-over-year change of +5.5%. For the current and next fiscal years, revenue estimates of $160.22 billion and $160.03 billion suggest changes of +7.5% and -0.1% respectively.
In terms of valuation, Ford Motor Company is graded A on the Zacks Value Style Score, indicating that it may be trading at a discount compared to its peers.
EV Growth Prospects
It's important to note that Ford is actively involved in the electric vehicle (EV) market, which presents significant growth opportunities. As the automotive industry transitions toward electric mobility, Ford's strategic focus on EVs could contribute to its future success.
In conclusion, considering these factors can provide insights into Ford's potential performance. While it's essential to conduct thorough research and consider various aspects before making investment decisions, Ford's stock shows promise, and its involvement in the EV market adds to its growth prospects.
(Disclaimer: F is one of the stocks/ETFs we are currently trading/investing)
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