The Oceania Times

Top Menu

  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Main Menu

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

logo

The Oceania Times

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • Asian shares fall as investors brace for inflation report

  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

  • South Korean won, Philippines peso lead losses among subdued Asian currencies

Stock Shares
Home›Stock Shares›Ford shares hit a 52-week low last week amid supply chain worries. Is the stock a buy?

Ford shares hit a 52-week low last week amid supply chain worries. Is the stock a buy?

By Megan
May 25, 2022
19
0
Share:

Ford December Sales Plunge 17 Percent From A Year Ago

Justin Sullivan/Getty Images News

Ford (NYSE:F) shares hit a 52-week low last week, despite high demand for both its EVs and traditional gas-powered cars. The company has faced supply-chain problems that have complicated production. At the same time, investors have recently worried about the impact of high gas prices and shaky prospects for consumer spending.

Despite these headwinds, has the Big Auto stalwart dropped enough to become a buying opportunity?

Ongoing Supply Chain Worries Cut Into Production

While shares of several of the major automakers have been pushed significantly lower over the past 30 days, Ford’s stock has been hit unusually hard, falling 16% as of Wednesday. Shares of rival General Motors (GM), in comparison, have declined 10%, while Honda’s (HMC) have slid 5% and Toyota’s (TM) 6%. Stellantis (STLA), meanwhile, has seen its shares rise 1%.

With the retreat, Ford shares also hit a 52-week low of $12.07 last week. That’s a 53% drop from the 52-week high of $25.87 they reached on Jan. 13.

In late April, Ford released a Q1 earnings report that was largely in-line with expectations, but included significant losses connected to its investment in EV maker Rivian (RIVN). Ford also reported that chronic supply chain problems had dragged down earnings by slowing production despite strong consumer demand for its vehicles.

Ford shares began a multi-session slide on May 5 after it reported that April sales had declined 10.5% year-over-year to 177k vehicles for the month. It noted that sales of EVs had shot up 50% to 17K vehicles.

The stock dipped again on May 12 after it was revealed that Ford had unloaded a significant chunk of its Rivian stock. Shares were also put under pressure by a lowered forecast from rival Toyota and a downgrade by Wells Fargo, both of which referenced chronic supply chain problems in the auto sector.

Is F a Buy?

Morgan Stanley, which recently raised its rating on Ford to Equal Weight, said in a note dated May 18 that it believes Ford will have to revise down its EV forecast due to ongoing supply chain issues. A delay in EV rollouts, however, would be countered by increased demand for old-school internal combustion engine, or ICE, vehicles.

“We believe investors may be underestimating the ‘longevity’ of Ford’s ICE profitability which is driven by strong demand relative to supply for ICE vehicles and an inability for the industry to produce sufficient quantities of EVs through the middle and later part of this decade,” the analysts wrote.

Tigress Financial Partners, meanwhile, reiterated its Buy rating in a note dated May 20, citing “strong demand” for Ford’s ICE F-series trucks and SUVs that it believes will fuel near-term revenue while “its aggressive electrification investment initiatives will drive long-term share price gains.”

Wall Street analysts, on average, rate Ford a Hold. Of the 24 analysts tracked by Seeking Alpha, nine rated the stock a Buy or Strong Buy. Half the total view the stock as a Hold and three have issued a rating of either Sell or Strong Sell. SA authors, on average, have a Buy rating on Ford.

Seeking Alpha’s Quant Ratings give a rosier assessment, seeing the stock as a Buy. As of midday Wednesday, the company had received an A+ for profitability, an A for growth, A- for valuation, B+ for momentum and a C for revisions.

For a more in-depth view of Ford, check out SA contributor The Asian Investor’s “Ford Is Finally Addressing Its Rivian Problem” or Juxtaposed Idea’s “Ford: Potential $32B of Enterprise Value Recovery in H2 Aided by F-150 Lightning”.

Source link

Previous Article

Biden-Harris Administration Announces $33 Million Infrastructure Investment ...

Next Article

Cryptos Seed Review – What Makes This ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Megan

Related articles More from author

  • Stock Shares

    Day trading guide for Thursday: 6 stocks to buy or sell today — 7th July

    July 7, 2022
    By Megan
  • Stock Shares

    Fifth Third Bancorp Sells 1,461 Shares of Cerner Co. (NASDAQ:CERN)

    July 4, 2022
    By Megan
  • Stock Shares

    Alain Lemaire Sells 160,338 Shares of Cascades Inc. (TSE:CAS) Stock

    May 30, 2022
    By Megan
  • Stock Shares

    Insider Selling: Paragon 28, Inc. (NYSE:FNA) Insider Sells 63,889 Shares of Stock

    July 12, 2022
    By Megan
  • Stock Shares

    Twist Bioscience Co. (NASDAQ:TWST) Insider William Banyai Sells 318 Shares

    July 6, 2022
    By Megan
  • Stock Shares

    This Value Stock is Splitting Into 3 Companies. What’s Next for Income Investors?

    July 14, 2022
    By Megan

Leave a reply Cancel reply

You may interested

  • Investment

    Suntec Real Estate Investment Trust (OTCMKTS:SURVF) Short Interest Down 32.4% in May

  • Australian Economy

    US Dollar Gyrations Dominate AUD

  • Investment

    Is Two Harbors Investment Corp (TWO) a Laggard in the Real Estate Sector?

  • LATEST REVIEWS

  • TOP REVIEWS

Timeline

  • August 10, 2022

    Asian shares fall as investors brace for inflation report

  • August 10, 2022

    A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

  • August 10, 2022

    Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

  • August 10, 2022

    The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

  • August 10, 2022

    South Korean won, Philippines peso lead losses among subdued Asian currencies

Best Reviews

Latest News

Stock Shares

Asian shares fall as investors brace for inflation report

People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik Register now for FREE unlimited access ...
  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    By Megan
    August 10, 2022
  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    By Megan
    August 10, 2022
  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    By Megan
    August 10, 2022
  • South Korean won, Philippines peso lead losses among subdued Asian currencies

    By Megan
    August 10, 2022
  • Recent

  • Popular

  • Comments

  • Asian shares fall as investors brace for inflation report

    By Megan
    August 10, 2022
  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    By Megan
    August 10, 2022
  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    By Megan
    August 10, 2022
  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    By Megan
    August 10, 2022
  • Asian shares fall as investors brace for inflation report

    By Megan
    August 10, 2022
  • Australian economy survived Covid better than most but recovery could slow, OECD says | Australian ...

    By Megan
    September 14, 2021
  • The Best Online Brokers, According to 5 Financial Experts

    By Megan
    September 14, 2021
  • Is Disaster Looming for Australia’s Economy?

    By Megan
    September 29, 2021

Trending News

  • Stock Shares

    Asian shares fall as investors brace for inflation report

    People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik Register now for FREE unlimited access ...
  • Gold and Precious Metals

    A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    A-Mark Precious Metals (NASDAQ:AMRK – Get Rating) and Maison Luxe (OTCMKTS:MASN – Get Rating) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the ...
  • Stock Shares

    Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    Asian markets started on a negative note following a retreat in Wall Street. This was mostly due to the caution ahead of US inflation data that will shape nvestor expectations ...
  • Australian Economy

    The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    How Reserve Bank boss getting LAUGHED at on the world stage will radically change Australia’s economy The Australian Bureau of Statistics is trialing a new monthly inflation data series Reserve ...
  • Currencies

    South Korean won, Philippines peso lead losses among subdued Asian currencies

    BENGALURU (Aug 10): Most Asian currencies were subdued on Wednesday, while most stock markets in the region fell, tracking losses on Wall Street, as investors awaited US inflation data later ...
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© Copyright The Oceania Times. All rights reserved.

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.