Nasdaq F Ford

[Updated 02/17/2022] General Motors Update

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Yesterday, February 23, 2022, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Under Armour (UA), which opened at $13.42.

The NASDAQ 100 Pre-Market Indicator is down -429.72 to 13,079.71. The total Pre-Market volume is currently 67,766,288 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro QQQ (TQQQ) is -4.69 at $40.45, with 7,513,386 shares traded

The First Trust NASDAQ Transportation ETF (FTXR) made its debut on 09/20/2016, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.

Ford (F) is positioning itself to take share of the rising EV market, realizing where the puck is heading to. And according to a recent Bloomberg report, the company is even considering splitting the BEV operations from its main ICE business.

The article suggested Ford will not create a spinoff for BEVs but will separately report and operate its BEV division. Wells Fargo’s Colin Langan likes the idea.

“A separation is compelling as the performance metrics for BEV & ICE operations should be different,” the analyst said. “More importantly, it will allow investors to perform a sum of the parts valuation (SOTPs) on ICE & BEV assets.”

It also appears CEO Jim Farley is supportive of the idea. Farley said on the Q4 earnings call that there is a big difference between the ICE & BEV businesses, with different opportunities at play, a sentiment Langan agrees with.

While the jury is still out regarding the timeline for the demise of the internal combustion engine (ICE), it is generally agreed its days are numbered.

At the other end of the scale, it is still early days for battery electric vehicles (BEVs) with heavy investment still required. Profitability is still out of reach, and “significantly” higher scale is needed.

Langan estimates that in 2022, Ford's BEV business will accrue losses of at least ~$1.5 billion, a figure likely to rise to over $2 billion by 2025. “Consequently,” says Langan, “Different performance metrics are needed.”

To fund the growing BEV segment, the ICE business should be focused on “driving” cash flow. “The BEV business needs to focus on growth to get needed scale and focus on getting vehicles to be incrementally profitable,” opined the analyst, “Not necessarily covering the high upfront R&D costs.”

As such, to reflect the “potential split & better SOTPs visibility,” Langan increased his price target from $24 to $26, suggesting shares will appreciate by 53% over the next year. Langan’s Overweight (i.e., Buy) rating stays as is. (To watch Langan’s track record, click here)

And what about the rest of the Street’s take? The results are a mixed bag; the stock currently has a Moderate Buy consensus rating, based on 8 Buys, 7 Holds and 2 Sells. There are decent gains projected here; the stock should yield returns of 38%, should the $23.44 average target be met in the months ahead. (See Ford stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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.

Ford Motor Co has no plans to spin off its electric vehicle or gasoline-powered vehicle businesses, Chief Executive Jim Farley said on Wednesday.

Ford Motor Co has no plans to spin off its electric vehicle or gasoline-powered vehicle businesses, Chief Executive Jim Farley said at a Wolfe Research conference on Wednesday.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The iShares Russell Top 200 Value ETF (IWX) is seeing unusually high volume in afternoon trading Wednesday, with over 319,000 shares traded versus three month average volume of about 130,000. Shares of IWX were up about 0.5% on the day.

The automobile, tires, trucks sector has come up with mixed results this reporting season. Notably, 66.7% of the S&P automobile companies beat on earnings and 100% surpassed the revenues. Moreover, earnings rose 16.5% year over year and revenues were up 6.3%, as repor

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The NASDAQ 100 After Hours Indicator is up 80.36 to 13,950.89. The total After hours volume is currently 119,251,777 shares traded.The following are the most active stocks for the after hours session: Advanced Micro Devices, Inc. (AMD) is +0.45 at $116.10, with 7,007,992 shares

A years-long run of cheap capital availability seems to be coming to an end now, mostly because the U.S. inflation rate is hovering near a 40-year high. On Feb. 10, the Labor Department announced a 7.5% year-over-year hike in the consumer price index (CPI: a metric used to gauge

Electric vehicle makers stand to benefit from the ongoing multi-decade shift from internal combustion engine vehicles to electrified ones. Electric vehicle (EV) stocks have seen some correction this year. If you've been waiting to enter the space, now could be a good time to take

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Are These EV Stocks The Top Stocks To Buy Now?Going into the current trading week, investors will likely be keeping an eye on diplomatic relations between Ukraine and Russia. Despite all this, some may be considering longer-term plays in the stock market, such as electric vehicle

Electric vehicle (EV) stocks broadly have been trading at sky-high valuations lately. But that doesn't apply to every company operating in that market. A few are still valued at extremely attractive levels, and among that group, these three look particularly smart buys for long-t

If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the First Trust NASDAQ Transportation ETF (FTXR), a passively managed exchange traded fund launched on 09/20/2016.