Ford is considered a deep-value stock with a 5% dividend yield, despite underperforming markets.

From Nasdaq: 2024-06-15 10:38:21

Investors are eyeing Ford (F) for its deep-value stock status with attractive valuations and a 5% dividend yield. Despite underperforming the markets, Ford’s stock may have limited downside and potential as an undervalued gem worth buying at these levels.

Ford’s EV losses, stagnant profits, and concerns about reaching peak profits in the legacy business have contributed to its underperformance. With issues in the automotive industry and EV price wars affecting profitability, analysts have a mixed outlook on Ford stock, with a consensus rating of “Moderate Buy.”

Ford’s stock trades at a low PE multiple of 5.9x, ranking poorly compared to S&P 500 companies. The company is focusing on its Ford Pro and Ford Blue business segments to generate profits, despite EV challenges. Ford’s planned hybrid portfolio and dividend strategy show long-term resilience and potential for re-rating in the future.



Read more at Nasdaq: Is This Underperforming Deep Value Stock a Buy for Its 5% Dividend Yield?