A Leap Forward
Breaking into the Zacks Rank #1 (Strong Buy) list recently, Ford Motor’s stock earns the coveted title of the Bull of the Day. Showing a bullish trend by surpassing its 200-day moving average, Ford’s stock has surged by +9% year to date, hinting at further potential growth in light of the company’s alluring valuation.
Revitalized Profitability and Discounted P/E
Before the pandemic, Ford had honed its profitability strategies, bearing fruit post the disruptions in the supply chain. The company hit multi-year EPS peaks of $2.01 per share last year. While a slight deceleration in the growth of Ford’s bottom line is projected, earnings estimates for FY24 and FY25 have seen positive revisions in the last 60 days.
P/S Ratio Advantage
With a price to sales ratio of 0.31X, Ford’s stock stands favorably alongside General Motors’ 0.29X, comfortably below the ideal threshold of less than 2X. Notably, Ford’s top-line forecast indicates a slight increase to $166.3 billion this year, compared to $165.99 billion in 2023, aligning with industry averages.
Electrifying Growth
Ford witnessed a remarkable 27% surge in EV sales last quarter, achieving record figures with 25,927 all-electric vehicles delivered. Boosted by the rising demand for models like Mustang Mack-E, F-150 Lightening, and E-Transit, Ford’s performance defied expectations. The EV push not only bolstered Q4 sales to $43.3 billion but also substantially surpassed earnings expectations, setting the stage for a promising Q1 in April.
Looking Ahead
The recent uptrend in Ford’s stock might just be the tip of the iceberg, considering its attractive valuation and impressive expansion in the EV sector. Seizing this moment could potentially yield lucrative returns, making Ford a compelling addition to investment portfolios this year.
