While Ford (NYSE:F) is a worthy contender in the electric vehicle industry, it still has to contend with Tesla (NASDAQ:TSLA). Yet, Ford stock investors can relax and stay in the trade. Ford is taking prompt action to stay competitive, and the iconic automaker should be able to reel in some reluctant EV buyers.
Furthermore, there’s an imminent event that will give Ford a chance to surprise the skeptics and short sellers. The expectations aren’t particularly high – but then, that’s exactly why Ford can pass with flying colors.
Ford Lures Tesla Owners With Cash Incentive
So, what is Ford doing to bring prospective EV buyers into the fold? For one thing, the company reduced the starting prices of some of its F-150 Lightning “trims” (i.e., model versions) by as much as $5,500.
At a $55,000 starting price, the base-model F-150 Lightning Pro trim’s price is unchanged. In a time when car prices seem to just keep going up, however, an unchanged price isn’t the worst possible thing.
Meanwhile, Ford is reducing the starting price of the F-150 Lightning XLT trim by $2,000 to around $63,000, as well as the Flash trim by a whopping $5,500 to roughly $68,000. The starting price of the Lariat extended range modelwill be cut by $2,500 to around $77,000.
Also, remember these F-150 Lightning series models qualify for a $7,500 federal U.S. tax credit because they’re priced below the $80,000 cutoff level. So, Tesla had better watch its back, as Ford is unafraid to compete for U.S. EV-market share.
Not only that, but Ford is introducing an additional $1,500 incentive for new F-150 Lightning and Mustang Mach-E electric SUV buyers who currently own or lease a Tesla vehicle. Now, that’s a sure sign that Ford is ready to rumble and aiming directly at Tesla.
Expectations Aren’t High, but That’s Good News for Ford
Are you ready to mark your calendar? Ford is expected to publish its first quarter financial results on Wednesday, April 24.
Since Ford is still reeling fromautoworkers’ strikesand still has to deal with high interest rates, there isn’t a strong sense of optimism on Wall Street. Contrarian investors should view the muted expectations as a good thing, though.
I recommend buying Ford stock before the earnings event. The analysts’ consensus estimate calls for Ford to have generated revenue of $40.64 billion in Q1 of 2024. That’s only up 4% year over year, not an ultra ambitious forecast.
Wall Street expects Ford will have earned 42 cents per share. That would be one-third less than the 63 cents per share that Ford earned in the year-earlier quarter.
Thus, the experts are bracing for substantial year-on-year bottom-line deterioration. This sounds like a prime setup for an earnings beat if Ford can deliver not-as-bad-as-expected results.
Ford Stock: Are You Ready for a Wednesday Wake-up Call?
With price incentives, Ford is taking decisive action to entice more prospective EV buyers. Ford might steal some of Tesla’s market share this year.
Along with that, investors should consider the muted expectations as Ford gears up for an important earnings event. Consequently, now’s the time to purchase a handful of Ford stock shares and prepare for a wonderful Wednesday.
On the date of publication, David Moadeldid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
FAQs
F Earnings Forecast
Next quarter's earnings estimate for F is $0.66 with a range of $0.55 to $0.93. The previous quarter's EPS was $0.49. F beat its EPS estimate 75.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 61.10% of the time in the same period.
Why is Ford stock underperforming? ›
Ford has a poor track record when it comes to growing shareholder wealth. Management is confident in the automaker's ability to increase revenue. But Ford still faces intense competition, low margins, and low growth.
Is Ford stock a good buy right now? ›
Ford Motor stock has received a consensus rating of buy. The average rating score is and is based on 28 buy ratings, 19 hold ratings, and 5 sell ratings.
What is Ford's earnings summary? ›
Ford's overall revenue for the first quarter, including its credit business, increased about 3% year over year to $42.78 billion. Net income for the period was $1.33 billion, or 33 cents per share, compared with $1.76 billion, or 44 cents, a year earlier.
What is Ford's sales forecast for 2024? ›
Ford's revenue for the 2024 first quarter was $42.8 billion, up 3% year-over-year even as vehicle shipments declined slightly. The company has increased revenue in each of the past three years and expects to do so again in full-year 2024.
What is the Ford dividend for 2024? ›
Key Highlights. Consumer Durables stocks do not always pay a dividend but as Ford Motor Co. pays dividends to reward its shareholders. In the quarter ending June 2024, Ford Motor Co. has declared dividend of $0.15 - translating a dividend yield of 6.02%.
How much is the next Ford dividend? ›
Dividend FAQ
Ford Motor Company's latest ex-dividend date was on May 7, 2024 . The F stock shareholders received the last dividend payment of $0.15 per share on June 3, 2024 . Ford Motor Company's next dividend payment will be on June 3, 2024 .
Is Ford in trouble in 2024? ›
Last year, Ford Motor (NYSE:F) was reeling from the effects of the United Auto Workers (UAW) strike. Now, in 2024, Ford appears to be staging a major comeback and Ford Motor stock looks poised for gains throughout the year. Plus, Ford isn't too richly valued and the company offers a great dividend.
Is Ford stock going to recover? ›
With the Fed's efforts to tame runaway inflation rates helping market sentiment, we believe Ford stock has the potential for some gains once fears of a potential recession are allayed. That said, concerns about automotive demand and lower pricing could weigh on the company's returns in the near term.
Is Ford expected to go up? ›
Based on short-term price targets offered by 21 analysts, the average price target for Ford Motor Company comes to $13.80. The forecasts range from a low of $10.00 to a high of $21.00. The average price target represents an increase of 15.58% from the last closing price of $11.94.
Will Ford Motor stock reach $100? Ford Motor stock would need to gain 748.90% to reach $100. According to our Ford Motor stock forecast, the price of Ford Motor stock will not reach $100. The highest expected price our algorithm estimates is $ 22.60 by Mar 16, 2025.
Is Ford stock overvalued or undervalued? ›
Over the past 52 weeks, F's P/CF has been as high as 11.02 and as low as 3.10, with a median of 4.61. These figures are just a handful of the metrics value investors tend to look at, but they help show that Ford Motor is likely being undervalued right now.
Why are people buying Ford stock? ›
Ford Motor Company
Investors are optimistic after the business reported 2023 fourth-quarter financial results that were well received by the market. The company's positive sales momentum continued through the first three months of this year.
Is Ford paying a special dividend? ›
With approximately 4 billion shares outstanding, and assuming it returns a dividend of $0.78 per share in 2024 -- based on the special cash dividend of $0.18 per share it paid in Q1 as well as four quarterly payments of $0.15 per share -- Ford will pay out about $3.12 billion in dividends this year.
Why is Ford's dividend so high? ›
For one, Ford's yield is high in part because the stock price has fallen nearly 25% over the last three months. When F stock reached its 2023 peak of $15.42, the $0.60 annual dividend equated to a yield of 3.9%. The stock has since fallen to the $11.60 range, which pushed the yield up above 5.1%.
Is Ford financially stable? ›
Ford Motor Co has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is.
What is the 5 year forecast for Ford stock? ›
According to the latest long-term forecast, Ford price will hit $12 by the end of 2024 and then $15 by the end of 2025. Ford will rise to $17 within the year of 2026, $20 in 2027, $25 in 2029, $30 in 2031 and $35 in 2035.
Is Ford a good investment for the future? ›
Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Ford Motor's earnings over the next few years are expected to increase by 68%, indicating a highly optimistic future ahead.
What is Ford's target price? ›
Stock Price Targets
| High | $21.00 |
|---|
| Median | $13.00 |
| Low | $10.00 |
| Average | $14.04 |
| Current Price | $11.85 |
It's that time of year again when most Ford Motor Company employees will be eligible to receive their annual profit-sharing check on March 14th, 2024. This year, approximately 58,000 U.S. hourly workers will receive up to $10,416 in profit-sharing.
What is Ford Motor Co Forward PE Ratio? Ford Motor Co's Forward PE Ratio for today is 5.87. Ford Motor Co's PE Ratio without NRI for today is 6.46. Ford Motor Co's PE Ratio for today is 12.53.
What is the whisper number for Ford? ›
The Earnings Whisper number was $0.48 per share. The company beat expectations by 2.08% while revenue grew 3.14% on a year-over-year basis. The company said it is now tracking to the high-end of its previous guidance range for adjusted EBIT of $10.0 billion to $12.0 billion for the year ending December 31, 2024.
