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Valued at a market cap of $40.8 billion, Ford Motor Company (F) is a global automotive company that develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles. The Dearborn, Michigan-based company is actively investing in electric mobility, advanced driver-assistance systems, and connected vehicle technologies as part of its strategy to lead the future of smart, sustainable transportation.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Ford Motor fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the auto manufacturers industry. The company’s key strengths lie in its brand legacy, market leadership in trucks, and aggressive push toward electrification and digital innovation. With over 120 years of experience, Ford has built a strong global reputation for quality, durability, and innovation. It also benefits from a vertically integrated business model, including its in-house financing arm, Ford Credit, which supports customer and dealer financing.
This automotive company is currently trading 30.9% below its 52-week high of $14.85, reached on Jul. 18, 2024. Ford Motor has soared 6.8% over the past three months, outpacing the S&P 500 Index’s ($SPX) 4.6% uptick during the same time frame.
Moreover, on a YTD basis, shares of F are up 3.6%, outperforming SPX’s 2% rise. However, in the longer term, F has declined 15% over the past 52 weeks, lagging behind SPX’s 12.1% uptick over the same time frame.
To confirm its recent bullish trend, F has been trading above its 50-day moving average since late April. However, it has remained below its 200-day moving average since late July, 2024, with slight fluctuations.
On May 5, Ford Motor delivered its Q1 results, and its shares surged 2.7% in the following trading session. The company’s revenue declined 5% year-over-year to $40.7 billion, primarily due to lower sales in its Ford Blue and Ford Pro segments. Additionally, a 400 basis-point drop in its adjusted EBIT margin led to a steep 71.4% year-over-year decline in its adjusted EPS of $0.14. Ford also expects a net adverse adjusted EBIT impact of approximately $1.5 billion for fiscal 2025.
However, on a positive note, the company achieved its third consecutive quarter of year-over-year cost reductions, excluding tariff-related effects, with total Q1 costs and expenses down 2.9% compared to the same period last year. Further adding to the uptick, Ford Pro gained market share in the most profitable U.S. and European customer segments.
Ford Motor has lagged behind its rival, General Motors Company’s (GM) 4.1% gain over the past 52 weeks. However, it has outpaced GM’s 10.9% decline on a YTD basis.
Despite F’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 24 analysts covering it. While the company is trading above its mean price target of $9.74, its Street-high price target of $14 suggests an upside potential of 36.5%.
On the date of publication, Neharika Jain 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.
