From Nasdaq Media: 2024-07-11 10:47:04

Ford Motor Company (F) is making significant strides in the EV market, becoming the second-largest EV manufacturer in the U.S. Analysts are cautiously optimistic on Ford stock, with a “Moderate Buy” rating and a solid 4.65% dividend yield. Ford’s presence in the EV market reflects strategic focus and innovation, challenging Tesla’s dominance.

Recent news from Barron’s highlights Ford’s potential to narrow the gap with its rival GM. Despite underperformance, capital discipline could be a catalyst for transformation. Ford’s Q2 EV sales surged 61% year-over-year, positioning the company as the second best-selling brand of electric vehicles in the U.S., following Tesla.

In Q1, Ford Motor reported stronger-than-anticipated results, with the commercial division compensating for losses in EVs. The company’s revenue grew 3.2% year-over-year to $42.78 billion, driven by solid performance in the commercial segment. Operating cash flow for the quarter was $1.4 billion, with a rock-solid balance sheet of $25 billion in cash.

Ford Motor’s stock valuation is relatively low, with a forward earnings multiple of 6.39x. The company’s price/sales ratio is at 0.29x, below both its five-year average and the sector median. Ford paid a quarterly dividend of $0.15 per share on June 3, with an annualized dividend yield of 4.65%, surpassing the sector’s median.



Read more at Nasdaq Media: Can This ‘Big 3’ Auto Stock Threaten Tesla’s EV Dominance?