What You Need to Know About Ford Stock Before Buying

Is 2022 just a speedbump for Ford stock?

facebook twitter linkedin


Ford Motor Company (NYSE:F) is a well-known American automobile manufacturer with about 182,000 employees worldwide. Ford stock has added 16.6% in the past year, and 35% this quarter. However, in 2022, the stock is still down 27.6%, after the equity's July and early August rally ran out of steam at the 200-day moving average. The 140-day moving average has kept some of these losses in check, though. What's more, F maintains an extremely low valuation, leaving its forward price-earnings ratio at a value of 7.18 and its price-sales ratio at a value of 0.41.

ford sept 7

These valuation metrics are made more appealing by the business’ growth estimates. Ford Motor Company is expected to report 15.9% revenue growth and 30.8% earnings growth for fiscal 2022. The company is also expected to produce an 8.1% increase in revenues for fiscal 2023. However, estimates predict a 5.8% decline in earnings for fiscal 2023. Ford Motor has also struggled to generate consistent annual top and bottom line growth in recent years, reporting significant declines for fiscal 2019 and fiscal 2020.

Although F's fiscal 2020 figures can be justified by the pandemic, the company reported a 2.8% decrease in revenues and a whopping 98.7% decrease in net income for fiscal 2019, which is worrisome for fundamental-based investors. Another major red flag with Ford’s fundamentals is its balance sheet. The car manufacturer holds $28.22 billion in cash and a massive $130.23 billion in total debt, which is well-over double the company’s market cap of $60.95 billion. Still, Ford stock provides an intriguing opportunity for value and dividend investors, seeing as F now offers a high dividend yield of 3.99% at a forward dividend of $0.60.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners