Ford Motor Company (F - Free Report) , recently announced plans to boost production of two large sport utility vehicles (SUVs) by 25% in 2018, per Reuters. By revving production of the new Lincoln Navigator and Ford Expedition at its Kentucky factory, this second-largest automaker in the United States will be able to drive profit margins and take on rivals such as General Motors Company (GM - Free Report) and Tesla, Inc. (TSLA - Free Report) in the field of electric and autonomous vehicles.
In fourth-quarter 2017, Ford’s automotive profit margin declined to 3.7% from 5.7% in the year-ago quarter. Also, the company’s margins came in lower than that of its opponents such as General Motors and Fiat Chrysler Automobiles N.V. . In fact, the profitable U.S. large SUV segment is dominated by General Motors with its models such as Chevrolet Suburban and GMC Yukon. In January 2018, General Motors sold over 19,000 large SUVs whereas Ford managed to sell little less than 3,500 Expeditions and 1,300 Navigators.
Furthermore, increasing number of Americans are opting for of high-margin SUVs and pickup trucks over the passenger cars. Consequently, in the United States, passenger car sales declined to 36.8% of total light vehicle sales in 2017. Notably, the urge to raise profit, amid huge competition and changing vehicles preference pattern of its consumers, might have prompted Ford to take such a move.
In a year’s time, this Zacks Rank #4 (Sell) company has underperformed the industry it belongs to. The stock has declined 16.2% against the industry’s growth of 2.6%.
While Fiat Chrysler holds a Zacks Rank #2 (Buy), General Motors and Tesla carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Fiat Chrysler, General Motors and Tesla have an expected long-term growth rate of 19.1%, 10% and 25%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Ford Motor Company (F - Free Report) , recently announced plans to boost production of two large sport utility vehicles (SUVs) by 25% in 2018, per Reuters. By revving production of the new Lincoln Navigator and Ford Expedition at its Kentucky factory, this second-largest automaker in the United States will be able to drive profit margins and take on rivals such as General Motors Company (GM - Free Report) and Tesla, Inc. (TSLA - Free Report) in the field of electric and autonomous vehicles.
In fourth-quarter 2017, Ford’s automotive profit margin declined to 3.7% from 5.7% in the year-ago quarter. Also, the company’s margins came in lower than that of its opponents such as General Motors and Fiat Chrysler Automobiles N.V. . In fact, the profitable U.S. large SUV segment is dominated by General Motors with its models such as Chevrolet Suburban and GMC Yukon. In January 2018, General Motors sold over 19,000 large SUVs whereas Ford managed to sell little less than 3,500 Expeditions and 1,300 Navigators.
Furthermore, increasing number of Americans are opting for of high-margin SUVs and pickup trucks over the passenger cars. Consequently, in the United States, passenger car sales declined to 36.8% of total light vehicle sales in 2017. Notably, the urge to raise profit, amid huge competition and changing vehicles preference pattern of its consumers, might have prompted Ford to take such a move.
In a year’s time, this Zacks Rank #4 (Sell) company has underperformed the industry it belongs to. The stock has declined 16.2% against the industry’s growth of 2.6%.
While Fiat Chrysler holds a Zacks Rank #2 (Buy), General Motors and Tesla carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Fiat Chrysler, General Motors and Tesla have an expected long-term growth rate of 19.1%, 10% and 25%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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