Ford stock underperforming despite signs of recovery, committing to EV strategy and cost improvements

From Nasdaq: 2025-01-14 08:00:00

Ford Motor Co. (NYSE: F) is the second largest automaker in the US, but its stock has been underperforming, trading down 16% despite signs of recovery. Ford’s pivot into the EV market has resulted in $1.5 billion in losses, but the company remains committed to its EV strategy.

Ford posted solid Q3 gains with EPS beating estimates and revenues rising 5.5% YoY. The Ford Pro commercial business saw a 13% revenue increase, with EBIT of $1.8 billion. Ford Model E reported an EBIT loss of $1.2 billion, but cost improvements are on track.

For 2024, Ford expects adjusted EBIT of $10 billion, adjusted free cash flow of $7.5 billion to $8.5 billion, and CapEx between $8 billion and $8.5 billion. The company predicts EBIT from Ford Pro to be around $9 billion, Ford Blue $5 billion, and Model E to have a full-year loss of about $5 billion.

Ford stock is showing a descending triangle pattern, indicating a bearish trend if it breaks below lower trendline support. The stock’s average consensus price target is $11.83, with a 22.5% upside potential. Actionable options strategies include using cash-secured puts and covered calls to capitalize on potential movements.



Read more at Nasdaq: Is a Ford Stock Turnaround on the Horizon?