With over 40 days remaining till year end, Ford Motor Co.’s (F - Analyst Report) F-Series has already surpassed the full-year 2012 sales of 645,316 trucks. The truck line’s full-year 2013 sales will likely be the highest since 2006.
Ford’s F-Series has recorded monthly sales of over 60,000 in each of the last six months. Sales in October increased 13% year over year to 63,803 trucks. Prior to this, the company witnessed a similar strong sales streak in 2006, when it crossed the 60,000 mark for eight consecutive months.
Despite several launches by competitors, Ford’s truck line enjoys immense popularity. In October, F-Series sales surpassed General Motors Company’s (GM - Analyst Report) Chevrolet Silverado by 220,000 units. It even outpaced the combined sales of Silverado and GMC Sierra by 67,000 units. Moreover, in the first 10 months of 2013, F-Series surpassed the sales of Chrysler’s Ram trucks by 330,000 units.
F-Series enjoys strong customer loyalty. The truck line is witnessing sales growth in both the low-end and high-end markets. Ford's F-150 STX value model, which targets the low-end market, comprised 10% of the total F-150 sales in 2013, increasing from 3% in 2012. Meanwhile, the F-Series trucks enjoy over 50% share in the high-end market, according to Ford.
Ford’s F-Series enjoys a substantial market share in the Western markets. California remains the second largest market for the trucks, after Texas, since 2008.
Texas witnessed a 27% growth in sales from 2008 to 2013, due to the growing energy and housing sector. F-Series sales in the upper Midwest and Plains states have expanded rapidly over the last 5 years, mainly due to increasing domestic energy exploration and the progressing renewable energy industry.
Ford currently carries a Zacks Rank #1 (Strong Buy). Other major automobile stocks worth considering are General Motors, Fuji Heavy Industries Ltd. (FUJHY) and Daimler AG . While Daimler is a Zacks Rank #1 stock, Fuji and General Motors carry a Zacks Rank #2 (Buy).