Ford stock has dropped 26.6% in 6 months due to various challenges; experts recommend selling

From Nasdaq: 2025-01-23 09:47:00

Shares of Ford (F) have dropped 26.6% in the last six months, underperforming the industry and peers like GM and Tesla. Despite a 9% year-over-year sales growth in Q4 2024 and a full-year increase of 4%, challenges from the Model e unit’s losses present growth hurdles. Investors are advised to evaluate their positions.

Ford saw a boost in U.S. sales due to diverse powertrain options and vehicle types. Retail sales in 2024 increased 6% year over year, with F-Series truck sales up 25%. With upcoming launches like the Maverick and Bronco, Ford’s financial strength, including a strong dividend yield, supports its growth prospects.

However, Ford is facing headwinds, including losses from the Model e unit, surging warranty expenses, and inflation-driven cost pressures. The automaker has cut its full-year 2024 EBIT forecast and faces challenges in managing warranty costs and material prices. Debt levels remain a concern amid these uncertainties.

Experts recommend considering offloading Ford stock due to ongoing challenges. The company carries a Zacks Rank #4 (Sell). Investors are advised to assess the situation and make informed decisions regarding their investments in Ford.

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Read more at Nasdaq: Ford Plunges 27% in 6 Months: Buy, Sell or Hold the Stock?