Ford's Stock Volatility and Investment Outlook Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy F?
Source: Fool
- Stock Performance: Ford's share price surged by 33% in 2025 but has dropped 8% in 2026 as of April 10, primarily due to rising oil prices from the Middle East conflict, indicating market concerns about its future performance.
- Valuation Appeal: With a forward P/E ratio of 8 compared to the S&P 500's 21.1, Ford's stock is undervalued, and if it narrows this gap, investors could see an 82% upside, making it attractive for value-seeking buyers.
- Dividend Yield: Currently, Ford pays a quarterly dividend of $0.15, resulting in a substantial dividend yield of 4.95%, which presents an appealing value proposition for investors looking to generate passive income from their holdings.
- Profitability Challenges: Ford's average operating margin over the past decade is only 1.9%, which is disappointing in a competitive industry, and its exposure to economic cycles could lead to significant fluctuations in demand and sales, increasing the risk of profitability issues.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of F Company's Stock Price Fluctuations
- Price Range Analysis: F Company's 52-week low is $9.29 per share, while the high is $14.795, with the last trade at $12.72, indicating stock price fluctuations within this range and reflecting market caution regarding its future performance.
- Technical Indicator Observation: According to data from TechnicalAnalysisChannel.com, F Company's stock is currently above its 200-day moving average, suggesting a potential upward trend in the short term, warranting investor attention on subsequent market reactions.
- Market Sentiment Assessment: Although the current stock price is below the 52-week high, it remains above the low, indicating a degree of market confidence that may attract investors seeking stable dividends.
- Investor Focus: The fluctuations in F Company's stock price could impact its dividend policy, prompting investors to closely monitor the company's future financial performance and market dynamics to make informed investment decisions.
See More
Key Takeaways from CNBC Investing Club Morning Meeting
- Market Trend Analysis: The stock market continued its strong performance from Monday, driven by investor optimism for an end to the Iran war despite a breakdown in peace talks, with West Texas Intermediate crude falling 5% to $93 per barrel, indicating a cautious outlook for the future.
- Amazon Position Trimming: Jim Cramer indicated a willingness to trim the Amazon position due to its over 20% rise since March 27 and exceeding a 5% portfolio weight, aiming to protect profits and manage risk, although the fundamentals remain solid.
- Alphabet Stock Outlook: Citi analysts named Alphabet an 'upside 90-day catalyst watch' and raised its price target from $390 to $405, anticipating that upcoming events like the Google Cloud Next will drive stock price increases, with Cramer expressing optimism about the company's direction.
- Rapid Trade Review: At the end of the video, Jim Cramer highlighted stocks such as JP Morgan, BlackRock, Dow Inc., Ford, General Motors, and United Airlines, showcasing the diversity of the investment portfolio and the broad market focus.
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CarMax Shares Plunge, Energy Stocks Decline Amid Market Shifts
- CarMax Stock Plunge: CarMax reported adjusted earnings of 34 cents per share and revenue of $5.95 billion for Q4, surpassing analyst expectations but reflecting a 15% year-over-year decline, leading to a 15% drop in stock price as the market expresses concerns over future growth prospects.
- Bitcoin-Linked Stocks Surge: Bitcoin's price rose nearly 3% to over $75,000, boosting shares of crypto-related companies like Robinhood and Coinbase, which gained nearly 10% and 6% respectively, indicating a renewed investor appetite for risk assets in the current market environment.
- Energy Stocks Under Pressure: Oil prices fell over 6% as negotiations between the U.S. and Iran stalled, causing the energy sector to decline more than 2%, with APA and Occidental Petroleum down 5% and 4.7% respectively, reflecting market uncertainty regarding energy supply dynamics.
- Novo Nordisk Partners with OpenAI: Novo Nordisk's U.S.-listed shares rose 3% following the announcement of a partnership with OpenAI to leverage AI for data analysis, enhancing operational efficiency and demonstrating the company's strategic focus on innovation and technology integration.
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UBS Upgrades Ford to Buy Rating, Sees Strong EPS Growth Potential
- Earnings Growth Potential: UBS analyst Joseph Spak and his team project Ford's earnings per share (EPS) could exceed $2 by 2027, with a credible path towards $3 thereafter, indicating that the company's earnings power is undervalued by the market due to its product portfolio and EV strategy.
- Positive Market Reaction: Ford's shares rose 4.4% in the first half hour of trading on Tuesday, reflecting a positive market response to UBS's upgrade, which may attract more investor interest in the company's growth prospects.
- Underestimated Cost Pressures: Despite recent concerns over rising gasoline and aluminum prices, UBS believes these factors have been overstated regarding their impact on Ford's 2026 performance, as the company has hedged against aluminum price increases, showcasing its cost management strengths.
- Optimistic Future Outlook: UBS notes that the market is currently pricing Ford's 2027 EPS at $1.73, which is 16% below their forecast, indicating that investors are not fully recognizing Ford's ability to overcome short-term headwinds expected to dissipate in the coming months and its long-term earnings potential.
See More
Latest Rating Changes on Wall Street
- Infleqtion Coverage Initiation: Citigroup initiates coverage of quantum computing firm Infleqtion with a Buy/High Risk rating and a $20 price target, highlighting its uniqueness in the quantum computing sector, which may attract investor interest.
- SAP Downgrade: Piper Sandler downgrades SAP from Overweight to Neutral, citing challenges in the macroeconomic environment and anticipating lower valuation multiples as the software industry transitions from SaaS to AI.
- Positive Catalysts for Alphabet: Citigroup adds a 90-day Catalyst Watch on Alphabet, expecting upcoming product updates during events like Google Cloud Next and YouTube Brandcast to drive stock price appreciation.
- Biogen Upgrade: Piper Sandler upgrades Biogen from Neutral to Overweight, raising the price target from $177 to $214, reflecting confidence in its growth potential moving forward.
See More
UBS Upgrades Ford to Buy Amid Aluminum Price Concerns
- Investment Rating Upgrade: UBS upgraded Ford's rating from neutral to buy while maintaining a $15 price target, indicating a 23.4% upside from Monday's close, reflecting confidence in Ford's future performance.
- Aluminum Price Impact Analysis: Despite aluminum prices rising approximately 16% since the Iran war began, Ford's stock has fallen 13.7%, with analysts suggesting that market concerns over aluminum are overstated, as Ford has hedged its aluminum exposure to mitigate potential risks.
- Earnings Outlook: Analysts project Ford's earnings per share to reach $3 beyond 2027, driven by an optimized product portfolio, improved U.S. regulatory conditions, and adjustments in its EV strategy, indicating significant future profitability potential.
- Market Performance Assessment: Although Ford's stock is down 7% year-to-date, underperforming the overall market, analysts believe that the company's focus on high-margin software and emerging battery energy storage systems will provide long-term growth opportunities.
See More
Analysis of F Company's Stock Price Fluctuations
- Price Range Analysis: F Company's 52-week low is $9.29 per share, while the high is $14.795, with the last trade at $12.72, indicating stock price fluctuations within this range and reflecting market caution regarding its future performance.
- Technical Indicator Observation: According to data from TechnicalAnalysisChannel.com, F Company's stock is currently above its 200-day moving average, suggesting a potential upward trend in the short term, warranting investor attention on subsequent market reactions.
- Market Sentiment Assessment: Although the current stock price is below the 52-week high, it remains above the low, indicating a degree of market confidence that may attract investors seeking stable dividends.
- Investor Focus: The fluctuations in F Company's stock price could impact its dividend policy, prompting investors to closely monitor the company's future financial performance and market dynamics to make informed investment decisions.
See More
Key Takeaways from CNBC Investing Club Morning Meeting
- Market Trend Analysis: The stock market continued its strong performance from Monday, driven by investor optimism for an end to the Iran war despite a breakdown in peace talks, with West Texas Intermediate crude falling 5% to $93 per barrel, indicating a cautious outlook for the future.
- Amazon Position Trimming: Jim Cramer indicated a willingness to trim the Amazon position due to its over 20% rise since March 27 and exceeding a 5% portfolio weight, aiming to protect profits and manage risk, although the fundamentals remain solid.
- Alphabet Stock Outlook: Citi analysts named Alphabet an 'upside 90-day catalyst watch' and raised its price target from $390 to $405, anticipating that upcoming events like the Google Cloud Next will drive stock price increases, with Cramer expressing optimism about the company's direction.
- Rapid Trade Review: At the end of the video, Jim Cramer highlighted stocks such as JP Morgan, BlackRock, Dow Inc., Ford, General Motors, and United Airlines, showcasing the diversity of the investment portfolio and the broad market focus.
See More
CarMax Shares Plunge, Energy Stocks Decline Amid Market Shifts
- CarMax Stock Plunge: CarMax reported adjusted earnings of 34 cents per share and revenue of $5.95 billion for Q4, surpassing analyst expectations but reflecting a 15% year-over-year decline, leading to a 15% drop in stock price as the market expresses concerns over future growth prospects.
- Bitcoin-Linked Stocks Surge: Bitcoin's price rose nearly 3% to over $75,000, boosting shares of crypto-related companies like Robinhood and Coinbase, which gained nearly 10% and 6% respectively, indicating a renewed investor appetite for risk assets in the current market environment.
- Energy Stocks Under Pressure: Oil prices fell over 6% as negotiations between the U.S. and Iran stalled, causing the energy sector to decline more than 2%, with APA and Occidental Petroleum down 5% and 4.7% respectively, reflecting market uncertainty regarding energy supply dynamics.
- Novo Nordisk Partners with OpenAI: Novo Nordisk's U.S.-listed shares rose 3% following the announcement of a partnership with OpenAI to leverage AI for data analysis, enhancing operational efficiency and demonstrating the company's strategic focus on innovation and technology integration.
See More
UBS Upgrades Ford to Buy Rating, Sees Strong EPS Growth Potential
- Earnings Growth Potential: UBS analyst Joseph Spak and his team project Ford's earnings per share (EPS) could exceed $2 by 2027, with a credible path towards $3 thereafter, indicating that the company's earnings power is undervalued by the market due to its product portfolio and EV strategy.
- Positive Market Reaction: Ford's shares rose 4.4% in the first half hour of trading on Tuesday, reflecting a positive market response to UBS's upgrade, which may attract more investor interest in the company's growth prospects.
- Underestimated Cost Pressures: Despite recent concerns over rising gasoline and aluminum prices, UBS believes these factors have been overstated regarding their impact on Ford's 2026 performance, as the company has hedged against aluminum price increases, showcasing its cost management strengths.
- Optimistic Future Outlook: UBS notes that the market is currently pricing Ford's 2027 EPS at $1.73, which is 16% below their forecast, indicating that investors are not fully recognizing Ford's ability to overcome short-term headwinds expected to dissipate in the coming months and its long-term earnings potential.
See More
Latest Rating Changes on Wall Street
- Infleqtion Coverage Initiation: Citigroup initiates coverage of quantum computing firm Infleqtion with a Buy/High Risk rating and a $20 price target, highlighting its uniqueness in the quantum computing sector, which may attract investor interest.
- SAP Downgrade: Piper Sandler downgrades SAP from Overweight to Neutral, citing challenges in the macroeconomic environment and anticipating lower valuation multiples as the software industry transitions from SaaS to AI.
- Positive Catalysts for Alphabet: Citigroup adds a 90-day Catalyst Watch on Alphabet, expecting upcoming product updates during events like Google Cloud Next and YouTube Brandcast to drive stock price appreciation.
- Biogen Upgrade: Piper Sandler upgrades Biogen from Neutral to Overweight, raising the price target from $177 to $214, reflecting confidence in its growth potential moving forward.
See More
UBS Upgrades Ford to Buy Amid Aluminum Price Concerns
- Investment Rating Upgrade: UBS upgraded Ford's rating from neutral to buy while maintaining a $15 price target, indicating a 23.4% upside from Monday's close, reflecting confidence in Ford's future performance.
- Aluminum Price Impact Analysis: Despite aluminum prices rising approximately 16% since the Iran war began, Ford's stock has fallen 13.7%, with analysts suggesting that market concerns over aluminum are overstated, as Ford has hedged its aluminum exposure to mitigate potential risks.
- Earnings Outlook: Analysts project Ford's earnings per share to reach $3 beyond 2027, driven by an optimized product portfolio, improved U.S. regulatory conditions, and adjustments in its EV strategy, indicating significant future profitability potential.
- Market Performance Assessment: Although Ford's stock is down 7% year-to-date, underperforming the overall market, analysts believe that the company's focus on high-margin software and emerging battery energy storage systems will provide long-term growth opportunities.
See More
