From Nasdaq: 2024-05-19 08:59:14

Ford stock (NYSE:F) has underperformed the S&P 500 this year, rising only 1% YTD amid concerns of a slowing automotive market. Despite this, Ford posted strong Q1 2024 results, with total revenue up 3% to $42.8 billion, driven by Ford Pro sales. The F-150 pickup truck remains a key product for Ford’s revenue.

However, the automotive market faces challenges with declining car prices despite rising consumer prices. New car prices fell 0.4% in April, impacting Ford’s profitability. Car and truck sales have also slowed, indicating weakening consumer confidence. Ford has seen inconsistent stock returns over the past few years, underperforming the S&P 500 in 2022 and 2023.

While there are concerns about Ford’s future performance, there are also positives. The slowdown in the EV market gives Ford time to focus on gas-based vehicles. Ford’s valuation is attractive at under 7x 2024 earnings, and the stock is down 20% since mid-2023. Ford’s plan to adjust EV production could benefit its financials. Trefis values Ford stock at $15 per share.

In May 2024, Ford’s return stands at 1% MTD and YTD, underperforming the S&P 500. Despite challenges in the automotive market, Ford has opportunities to leverage its gas-based vehicles and attractive valuation for future growth potential. Trefis values Ford stock at $15 per share, a 25% upside potential from the current market price.



Read more at Nasdaq: Will The EV Slowdown Benefit Ford Stock?