From mega to micro caps, 2022’s stock market has shown little mercy to either the big hitters or small fry, with valuations across the board lying in tatters. Of course, the one positive for investors is you can now load up on shares of companies at what might be considered very enticing entry points.
With shares down 40% year-to-date, Tigress' 5-star analyst Ivan Feinseth thinks Ford (F) stock looks particularly appealing right now. Feinseth believes the recent pullback “creates a compelling entry point,” and cites several reasons why the auto giant is poised to bounce back.
The company’s “industry-leading” F-series trucks and SUV models are in high demand, says Feinseth, while Ford is pushing ahead with the production of its EV offerings, including the Mustang Mach-E, E-Transit, and F-150 Lightning. The latter’s April 26 production launch saw the F-150 Lightning enter the EV pickup market before a number of competitors while its 2022 “production run” is already sold out.
Ford is acclimatizing to the new auto paradigm, with the company transforming its production methods. Ford now has “two distinct manufacturing business units highlighting EV production success and unlocking value.” There’s the Ford Model E manufacturing unit, which will function as a separate entity from its ICE manufacturing segment which has been given the title of Ford Blue.
Ford is not messing around with its EV initiatives. To develop and expand its production capabilities, over the next four years, the company intends to invest $50 billion in EVs. By the end of 2026, the company is targeting the production of more than 2 million EVs annually, and by 2030, has set its sights on having of 40% of global vehicle production “fully electric.”
With new products continually rolled out while the company makes further inroads internationally, Feinseth believes Ford’s “consistent long-term history of returning cash to shareholders will drive greater long-term shareholder value creation.”
Accordingly, Feinseth believes “significant upside” exists from here, and reiterates a Buy rating on Ford shares along with a $22 price target. The figure suggests upside of 77% from current levels. (To watch Feinseth’s track record, click here)
What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 8 Buys, 9 Holds and 2 Sells add up to a Moderate Buy consensus. In addition, the $19.94 average price target indicates ~61% upside potential. (See Ford stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.