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Bull of the Day: Ford (F)

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The last time someone asked me about today’s Bull of the Day, I put a sour look on my face. I think my exact response was, “I’ve had people ask me about that stock for nearly 20 years and nobody I know has ever made a dime off it.” At the time, the stock was trading a solid 30% lower than it trades today, even with the market selling off. I am man enough to admit when I am wrong. If you can’t take a loss in this game, you are in the wrong place.

As part of my penance for my blunder, I am naming Ford (F - Free Report) my Bull of the Day. I am sure that most of you have at least been in a Ford, perhaps maybe even owned one. I have owned two, both Mustang GTs, both manual, and both awesome. Ford now includes the Lincoln brand but in the past included the now defunct Mercury.

The Zacks Rank here is top-notch. Currently, Ford is a Zacks Rank #1 (Strong Buy). The Zacks Style Scores are great as well. The Value Style Score is A, Growth B, and Momentum of D to help it round out with a VGM Composite Score of A. The company is in the Automotive – Domestic industry which ranks in the Top 15% of our Zacks Industry Rank.

Both revenue and earnings growth are very impressive when looking at both the current year and next year. Current year revenue growth is slated to come in at 9.03% with next year pushing up to 19.01%. Looking at the earnings side, that translates to 158% EPS growth for the current year, followed up by 57% growth for next year. That is not the type of growth number typically associated with a large automaker like Ford.

Part of the reason is electrification. Ford has been working on electrifying a good chunk of its fleet. It’s all about the future of mobility. Like it or not, the days of the internal combustion engine are numbered. Ford has seen some success with the Mach E and has also recently unveiled a new electric F150 Lightning.

Analysts on Wall Street are taking note. Over the last sixty days, two analysts have increased their earnings estimates for the current year as well as next year. The bullish move in estimates has pushed up the Zacks Consensus Estimate for the current year from 95 cents to $1.06 while next year’s number is up from $1.45 to $1.66.



 


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