Business will be battling high inflation, low inventories, semiconductor supply issues, and Covid all while trying to produce more electric vehicles. Against that backdrop, Deutsche Bank analyst Emmanuel Rosner prefers General Motors (ticker: GM), which he rates at Buy, to Ford Motor (F), which he rates at Hold.
Full Answer
Should you buy GM stock?
Any recent changes to analyst estimates for General Motors Company should also be noted by investors ... Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven ...
Is Ford stock a good investment?
What is clear though, is that Ford stock has delivered pleasant returns; its 16% year-to-date uptick is better than any publicly traded U.S. automaker, and best of the five most valuable publicly traded auto companies on Earth. While it doesn't begin to make up for the 34% haircut F stock took in 2018, it's a welcome bounce nonetheless.
When to buy Ford stock?
Key Points
- Ford reported fourth-quarter and full-year 2021 earnings on Thursday.
- Despite aggressive spending, Ford remains very profitable.
- Higher North American margins and strong free cash flow guidance bode well for 2022.
When will GM pay dividends?
General Motors Co. will resume production of the Chevrolet Bolt and larger Bolt EUV electric vehicles in April after the automaker and its battery partner, an LG Group company, found a solution to its manufacturing gaffes. GM stopped production of the ...
Is GM a good stock to buy right now?
GM trades for six times projected earnings of about $7 a share in both 2022 and 2023, one of the S&P 500 SPX –1.08% index's lowest price/earnings ratios. Its market cap of $60 billion compares with $1 trillion for Tesla (TSLA). “The stock is very attractive.
Is Ford stock a good buy now?
Ford stock raced higher in 2021 and into the new year, but retreated sharply during the recent market correction. Bottom line: Ford stock is not a buy now.
Is Ford a good stock for 2022?
Based on its current quarterly dividend per share of $0.10, Ford boasts an annualized dividend yield of 3.0% as per its last done stock price of $13.28 as of June 9, 2022. F's dividend yield compares favorably with the broader market and its closest peer.
Is Ford a good stock to buy long term?
In April, Ford's sales outperformed the industry with a total share of 13.8%. That's an improvement over its 2021 share of 12.6% and reverses four years of market share decline. Additionally, sales of new models rose 17.9% versus March, and electric vehicle sales were up 139% year over year.
Is Ford a good stock to buy 2021?
Today's market reaction to the first-quarter report gives long-term investors a better opportunity to buy Ford's stock to help diversify a portfolio of EV investments. The company maintained its outlook for the balance of 2022, implying an increase in operating income of between 15% and 25% over 2021 levels.
Is Ford a Buy Sell or Hold?
Ford Motor has received a consensus rating of Hold. The company's average rating score is 2.14, and is based on 7 buy ratings, 10 hold ratings, and 4 sell ratings.
Will Ford stock rise again?
Ford reports FY 2021 results on Thursday February 3. Now, is F stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 54% chance of a rise in F stock over the next month (twenty-one trading days).
What is the target price for Ford stock?
Stock Price TargetsHigh$32.00Median$17.00Low$11.80Average$17.98Current Price$13.28
What is Ford's stock expected to do?
Stock Price Forecast The 21 analysts offering 12-month price forecasts for Ford Motor Co have a median target of 17.00, with a high estimate of 32.00 and a low estimate of 11.80. The median estimate represents a +33.44% increase from the last price of 12.74.
Why you should invest in Ford stock?
Per share F boasts an average earnings surprise of 64.6%. F should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
Why are Ford stocks so low?
Ford failed to impress the market, and the stock tanked after the report came out. Ford's total sales in March dropped 25.6%, with truck sales tumbling 34.4% and SUV sales declining 9.4% year over year.
Is it good to invest in Ford motor?
Ford Motor Company's trailing 12-month revenue is $134.6 billion with a 8.6% profit margin. Year-over-year quarterly sales growth most recently was -4.8%. Analysts expect adjusted earnings to reach $1.934 per share for the current fiscal year. Ford Motor Company currently has a 2.9% dividend yield.
Pros & Cons of Investing in Auto Manufacturers
For instance, commodity prices can make a big difference in profitability. The costs of steel and aluminum are significant factors in maintaining strong profit margins. Foreign exchange rates come into play too – and that’s just the beginning.
Is GM Stock Worth Buying?
General Motors ( NYSE: GM) has been on a road of recovery. It has been five years since its bonds became investment grade status and the company has been managing its cash well. It had to tighten its metaphorical belt, the efforts are paying off.
Should You Buy Ford Stock?
Ford ( NYSE: F) is also making some big changes. It is reducing the number of models it carries, for now. In 2007, Ford had a model line-up that included 27 different styles. By the end of 2019, it will release just 8. Of those models, only two are cars: the Mustang and a hatchback crossover called Focus Active – but all this is temporary.
General Motors Vs Ford Stock Summary
Both General Motors and Ford have exciting opportunities on the horizon, it just depends on whether you think the price is right for your risk tolerance.
What battery does FedEx use for pallet mover?
With a range of 250 miles and 600 cubic feet of cargo space, the EVs will be powered by Ultium batteries. FedEx is also purchasing GM's BrightDrop EP1 electric pallet-mover. The EP1 will be used in warehouses and to aid in the delivery of heavy packages to customer's doors.
What is the arrow in Ford's quiver?
Another arrow in Ford’s quiver is Rivian. Rivian is an EV startup that received a great deal of funding from Amazon ( AMZN) and Ford. Rivian has a contract with Amazon to provide 100,000 electric delivery vehicles by 2030. While Ford’s total investment in Rivian is undisclosed, it is substantial.
What is the difference between Ford and GM?
One of the primary differences between Ford and GM is that the former company has set a goal of hitting 40% of sales through electric vehicles by 2025, while GM plans to end sales of gas-powered vehicles by 2035.
How much will the chip shortage cost in 2021?
This is a marked increase from estimates earlier in the year. Ford forecasts the shortage will decrease earnings by $2.5 billion in 2021, GM predicts a $1.5 billion earnings reduction.
What is the market share of GM in 2020?
The companies are the two largest motor vehicle manufacturers in the United States: in 2020, GM held 17.1% of US sales, while Ford captured 13.7% of the US market. However, those totals represent a marked decline over the last two decades, as the companies’ combined US market share was over 50% in 2000.
Is Ford investing in EV batteries?
Ford is also investing in EV battery start-up Solid Power. That company makes solid-state batteries. While they are more costly than lithium-ion batteries, they are lighter, have greater energy density, and have greater range than lithium-ion batteries. The hope is that research can result in lower costs.
What are the two auto companies that are on a steady uptrend?
For instance, General Motors ( NYSE: GM) and Ford ( NYSE: F) are two classic American automakers that have been on steady uptrends since the start of the year. On the surface, these two auto stocks may seem less exciting because of less volatile movements in their stock prices. However, it’s worth mentioning that these legendary automakers are not ...
What is the deal between Ford and Alphabet?
Ford and Alphabet ( NASDAQ: GOOGL) are entering a six-year deal that will make the tech giant responsible for much of Ford’s growing in-vehicle connectivity. This partnership is designed to streamline Ford’s operations and accelerate an ongoing $11 billion restructuring plan.
Did Cruise buy Voyage?
With the support from General Motors, Cruise has reportedly agreed to acquire Voyage, a self-driving car start-up that operates in retirement communities. This acquisition adds to ongoing consolidation in the AV sector after years of enthusiasm in the potentially multi-trillion market for the transportation sector.
Does GM need to restructure?
Langa acknowledged that the GM still needs to restructure its international operations to further reduce costs and exit unprofitable markets. But he noted that the company’s North American operations are generating profit margins that are particularly impressive.
Which companies have shut down their factories?
For the most part, GM and Ford have moved in parallel during the crisis. Both companies have shut down their factories in North America and elsewhere. (Outside of China, South Korea, and Japan, most auto factories around the world are closed right now.)
Will Ford and GM reopen?
and Canada, it's a safe bet that GM and Ford will reopen their factories in North America at about the same time and under similar conditions and limitations , because the unions will have to agree to the plans.
Market volatility is affecting EV stocks and legacy automakers
Daniel has been writing for Fool.com since 2019. He's a fan of blue chip businesses and paradigm-shifting growth companies. Daniel covers the industrial sector, cryptocurrency, oil and gas, renewable energy, and electric vehicles.
Ford has bold plans for 2022
Daniel Foelber (Ford): The year-to-date charts for both Ford and GM are pretty ugly, as both stocks are down over 12%.
The stock and the business are moving in different directions
Howard Smith (General Motors): The stocks of traditional automakers General Motors and Ford both dropped after recent earnings announcements, and both are down about 13% year-to-date. But zooming back out some, Ford shares have soared 56% over the past 12 months, while those of GM have dropped by about 6%.
The importance of a track record
Ford and GM both recognize that the EV industry is chock-full of unique supply chain, engineering, and technical challenges. Yet both companies have vital experience in mass production and distribution.
General Motors (GM)
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
General Motors Company - Hold
Zacks' proprietary data indicates that General Motors Company is currently rated as a Zacks Rank 3 and we are expecting an inline return from the GM shares relative to the market in the next few months.
Style Scorecard
The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports.
Chart for GM
One of the world’s largest automakers, General Motors’ U.S. market share was 14.4% of the industry’s total sales in 2021. Headquartered in Detroit, the auto giant has had a long and checkered history. Founded in 1908, the company rose to dominate the U.S.
Ford Motor (F)
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
Ford Motor Company - Hold
Zacks' proprietary data indicates that Ford Motor Company is currently rated as a Zacks Rank 3 and we are expecting an inline return from the F shares relative to the market in the next few months.
