Lucid Group said on Thursday that customers will get a $7,500 credit on buying certain variants of the Air luxury electric car, revving up a price war started by market leader Tesla Inc.
At Holdings Channel, we have reviewed the latest batch of the 24 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Ford Motor Co. (Symbol: F) was held by 11 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good ide
Volvo Cars' top executive said on Thursday that the Swedish automaker has no intention of cutting its electric vehicle (EV) prices despite a similar move by market leader Tesla that has put pressure on others to follow suit.
Over long periods, Wall Street is a money machine for investors. But on a year-to-year basis, the stock market can be a bit of a guessing game. Last year, the three major U.S. stock indexes produced their worst returns since 2008. Unless you were short-selling equities or heavily
Ford (NYSE:F) published a weaker set of Q4 FY’22 earnings due to supply chain-related headwinds and production issues that impacted the company’s cost base. Ford’s operating profits fell short of both the company’s guidance and Street estimates, coming in
U.S. Treasury Secretary Janet Yellen touted clean energy investments on Wednesday at a Tennessee electric vehicle battery plant benefiting from tax incentives in President Joe Biden's signature climate legislation, adding that she supports Europe's plans for competing subsidies.
U.S. Treasury Secretary Janet Yellen visits an electric vehicle battery plant in Tennessee on Wednesday, touting the U.S. clean energy investments enabled by President Joe Biden's climate legislation just hours after Biden did the same in his State of the Union address.
Looking at the universe of stocks we cover at Dividend Channel, on 2/10/23, Siemens A G (Symbol: SMAWF), Janus Henderson Group plc Ordinary Shares (Symbol: JHG), and Ford Motor Co. (Symbol: F) will all trade ex-dividend for their respective upcoming dividends. Siemens A G will
Consumer-facing stocks were battered in 2022 as rising inflation reduced demand for many companies. However, investors seem to be increasingly optimistic in the new year, with the Nasdaq Composite index up almost 15% year to date. With the market showing signs of recovery, now mi
After a turbulent 2022 for the automotive industry, investors were thrilled when General Motors posted surprisingly strong fourth-quarter results. The better-than-expected earnings on strong revenue drove GM stock higher, and it also pulled competitor Ford Motor Company (NYSE: F)
Ford (
NYSE:F
) recently released its
quarterly earnings results, and many traders decided to punish CEO Jim Farley for being honest about the company's past mistakes. That's unfortunate, and I am bullish on Ford stock because the iconic automaker is taking decisive action to address its problems.
It's funny how investors can like a company but then turn around and hate it a few months later. Ford was a darling of the market in 2021, and the share price reflected Wall Street's fervor for the company. Then, in 2022, financial traders decided they didn't like Ford anymore.
Recently, investors and commentators have been unabashed in their aversion to Ford. For instance, Deutsche Bank analyst Emmanuel Rosner downgraded Ford stock from Hold to Sell and reduced his price target from $13 to $11. Additionally, traders pushed the Ford share price lower in the past week. Now, it's time to consider what Ford's critics are objecting to and whether there's an opportunity for contrarian investors.
More Ford EVs Will Qualify for Tax Credits
Before we get to Ford's quarterly financial data and the chief executive's comments, we can't ignore a major news event that's definitely bullish for Ford stock. Specifically, the U.S. Treasury Department enacted changes that would allow more of Ford's
electric vehicles (EVs) to qualify for $7,500 tax credits.
Basically, the Treasury Department decided to lift the price caps for certain EVs to qualify for the tax incentives established by the Inflation Reduction Act. As a result, the Ford Mustang Mach-E and Escape Plug-in Hybrid EV models may now qualify for tax credits.
The retail price cap on those vehicle models has been lifted from $55,000 to $80,000. Consequently, more people might buy those Ford EVs due to the tax incentives, so this looks like a win-win scenario for the company and its customers.
Ford Posted an Earnings Miss, but Not All the News is Bad
Now, for some bad news. There's no denying that Ford posted an earnings miss for 2022's fourth quarter. The company's skeptics and short-sellers took advantage of this, sending Ford stock lower.
Here's what happened. Ford reported adjusted earnings of $0.51 per share, which fell short of the consensus estimate of $0.62 per share. It's understandable that some investors were disappointed with this result, but they should bear in mind that inflation was high during the quarter, and supply-chain disruptions were still a problem.
Besides, not all of the news was negative. Turning to the top line, Ford's Q4-2022
revenue increased 17% to $44 billion, beating Wall Street's forecast of $41.4 billion. Plus, income-focused investors should be glad to learn that Ford declared a first-quarter regular
dividend of $0.15 per share. Currently, Ford pays a 4.5% dividend yield, which is a nice bonus for long-term shareholders.
Ford's CEO Admits the Problems and is Ready to Address Them
Some bearish traders seem to think that Ford's management isn't aware of the company's problems. Yet, it's clear that Farley is aware of the company's challenges and is fully prepared to deal with them.
Here's what Farley said that bothered some investors: "We should have done much better last year...We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance." It's not every day that executives of giant companies accept responsibility for their mistakes, so Farley should be commended for this.
Furthermore, Ford is already taking action to address its financial issues. First, Ford is "monetizing" (i.e., unwinding) its share position in Rivian Automotive (
NASDAQ:RIVN
), which was partially responsible for Ford's disappointing quarterly earnings result.
Second, Farley emphasized that Ford is and will continue to be "committed to disciplined capital allocation." This is exactly what Ford's investors should want to hear from the chief executive now. Stay tuned as further details on this may be forthcoming, perhaps in terms of workforce reductions and other cost-cutting measures.
Moreover, Ford is taking the EV revolution seriously. The company says that it is “significantly increasing” production of the Mustang Mach-E electric SUV model this year and is being proactive by reducing Mach-E prices.
Is Ford Stock a Buy, According to Analysts?
Turning to Wall Street, F stock is a Hold based on four Buys, five Holds, and two Sell ratings. The average
Ford stock price target is $14.09, implying 4.8% upside potential.
Conclusion: Should You Consider Ford Stock?
Ford's CEO isn't ignorant of his company's challenges. He's aware of Ford's past errors, and the company is taking steps to improve its bottom line in the coming quarters. So, there's a setup for a potentially positive surprise in a few months when Ford reports its current-quarter results. Meanwhile, contrarian investors should consider Ford stock as the price is down, the dividend is intact, and Farley's honesty is refreshing.
Disclosure
The Ford Motor Co works council in Cologne, Germany invited workers to a meeting on Feb 14 to update them on negotiations with management over planned job cuts at Ford's plants in Europe, a union representative said on Tuesday.
The Ford Motor Co works council in Cologne, Germany invited workers to a meeting on Feb 14 to update them on negotiations with management over planned job cuts at Ford's plants in Europe, a union representative said on Tuesday.
Last week, many auto biggies released U.S. vehicle sales data for January 2023. Among the automakers that revealed monthly sales numbers, Honda, Ford, Mazda, Hyundai, Kia, Subaru and Volvo registered year-over-year gains, while Toyota posted a decline in sales. Per Motor
Hertz Global Holdings Inc on Tuesday reported a quarterly profit versus a year-ago loss, as demand for rental cars stayed strong amid surging leisure travel and constrained production from automakers.
Treasury Secretary Janet Yellen will visit a General Motors LG Energy Solution joint venture battery cell manufacturing plant in Tennessee on Wednesday to tout rising U.S. electric vehicle and battery production, the department said Monday.
Shares of Ford Motor Company F plunged 7.6% after posting fourth-quarter 2022 adjusted earnings of $0.51 per share, widely missing the Zacks Consensus Estimate of $0.60 per share.Shares of Apple Inc. AAPL rose 2.4% after the company forecast that iPhone sales would likely
Ford Motor Company (F) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
General Motors (NYSE:GM) published a better-than-expected set of Q4 2022 results on Tuesday, driven by continued strong demand, particularly in North America, and signs that supply chain conditions were improving after over a year of shortfalls. Over the quarter, revenue rose 28%