QQQ   432.13 (+0.25%)
AAPL   169.12 (-2.07%)
MSFT   415.95 (+0.56%)
META   501.82 (+0.32%)
GOOGL   154.52 (-0.22%)
AMZN   183.55 (-0.04%)
TSLA   157.43 (-2.51%)
NVDA   873.80 (+1.60%)
AMD   163.55 (+2.01%)
NIO   3.84 (-1.29%)
BABA   70.09 (-0.75%)
T   16.05 (-1.17%)
F   12.18 (-0.41%)
MU   121.26 (-0.09%)
GE   155.55 (+1.20%)
CGC   6.86 (-1.72%)
DIS   114.13 (+1.04%)
AMC   2.75 (+11.34%)
PFE   25.83 (-0.31%)
PYPL   63.85 (+0.54%)
XOM   118.60 (-0.90%)
QQQ   432.13 (+0.25%)
AAPL   169.12 (-2.07%)
MSFT   415.95 (+0.56%)
META   501.82 (+0.32%)
GOOGL   154.52 (-0.22%)
AMZN   183.55 (-0.04%)
TSLA   157.43 (-2.51%)
NVDA   873.80 (+1.60%)
AMD   163.55 (+2.01%)
NIO   3.84 (-1.29%)
BABA   70.09 (-0.75%)
T   16.05 (-1.17%)
F   12.18 (-0.41%)
MU   121.26 (-0.09%)
GE   155.55 (+1.20%)
CGC   6.86 (-1.72%)
DIS   114.13 (+1.04%)
AMC   2.75 (+11.34%)
PFE   25.83 (-0.31%)
PYPL   63.85 (+0.54%)
XOM   118.60 (-0.90%)
QQQ   432.13 (+0.25%)
AAPL   169.12 (-2.07%)
MSFT   415.95 (+0.56%)
META   501.82 (+0.32%)
GOOGL   154.52 (-0.22%)
AMZN   183.55 (-0.04%)
TSLA   157.43 (-2.51%)
NVDA   873.80 (+1.60%)
AMD   163.55 (+2.01%)
NIO   3.84 (-1.29%)
BABA   70.09 (-0.75%)
T   16.05 (-1.17%)
F   12.18 (-0.41%)
MU   121.26 (-0.09%)
GE   155.55 (+1.20%)
CGC   6.86 (-1.72%)
DIS   114.13 (+1.04%)
AMC   2.75 (+11.34%)
PFE   25.83 (-0.31%)
PYPL   63.85 (+0.54%)
XOM   118.60 (-0.90%)
QQQ   432.13 (+0.25%)
AAPL   169.12 (-2.07%)
MSFT   415.95 (+0.56%)
META   501.82 (+0.32%)
GOOGL   154.52 (-0.22%)
AMZN   183.55 (-0.04%)
TSLA   157.43 (-2.51%)
NVDA   873.80 (+1.60%)
AMD   163.55 (+2.01%)
NIO   3.84 (-1.29%)
BABA   70.09 (-0.75%)
T   16.05 (-1.17%)
F   12.18 (-0.41%)
MU   121.26 (-0.09%)
GE   155.55 (+1.20%)
CGC   6.86 (-1.72%)
DIS   114.13 (+1.04%)
AMC   2.75 (+11.34%)
PFE   25.83 (-0.31%)
PYPL   63.85 (+0.54%)
XOM   118.60 (-0.90%)

Is Ford's Revenue Enough to Juice its Stock Price?

Is Fords Revenue Enough to Juice its Stock Price?

Key Points

  • Ford reports growing EV sales as evidence that its strategy is working. 
  • Overall revenue is still below pre-pandemic levels, suggesting that "getting back to normal" won't happen overnight.
  • Ford stock looks more like a short sell opportunity than a long-term investment. 
  • 5 stocks we like better than Ford Motor

The market has an upward bias, and it's as good a reason as any for Ford Motor Company (NYSE: F) stock to climb over 8% in the week ending October 5. The company’s outlook for electric vehicle (EV) sales may be getting investors excited. According to the company, EV sales climbed nearly 200% (197%) and the company’s market share rose 3.1 percentage points. 

Adding fuel to the fire, Morgan Stanley (NYSE: MS) upgraded its rating on Ford stock from "equal weight" to "overweight" and gave Ford stock a price target of $14. But the stock only got the tiniest of bounces from that news. 

This combination may be why traders see opportunities. But the overall revenue picture may hinder the jolt investors have given the stock. It’s fair to say that the company may have lowered expectations to the point where it can’t help but leap over them when it reports earnings in late October. Ultimately, the Ford stock forecast might leave investors wishing for more.

The Revenue Numbers Suggest Normal is Some Time Away 

On October 4, Ford announced that its September sales came in below expectations. The company was also lower on a year-over-year basis (142,644 vs. 156,614 in the prior year). The report came approximately two weeks after the automaker announced $1 billion in unanticipated supply chain costs. 

Ford’s first half revenue is lower than 2019. The last two years have been anomalies for every automaker so 2019 is a more important comparison point when looking at Ford.  

Ford’s revenue is expected to grow at a pace of approximately 7% over the next five years. However, investors may want to wait a quarter or two to see if those numbers adjust to reflect the macroeconomic headwinds in the economy.  

One area those headwinds may affect the company’s numbers occur in earnings. Right now, Ford’s earnings are well above pre-pandemic levels, which would support stock price growth, right? However, this is Ford’s highwater mark in terms of earnings per share, which are expected to decline by 2.5% over the next five years.  


Investors Will See What They Want to See 

As investors see more electric vehicles on the road, it will stir interest in EV stocks. Investors may believe that if they wait for Ford to show them the sales and earnings numbers, they will miss out on gains. However, the macroeconomic outlook suggests that automobile demand of all types will play out as expected.  

Right now, Ford stock looks more like a trade than an investment. If you’re inclined to trade options or engage in short selling, you might find an opportunity. Ford stock is cheap but it may not look as cheap as the economy begins to reflect the effects of rising interest rates.  

Should you invest $1,000 in Ford Motor right now?

Before you consider Ford Motor, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ford Motor wasn't on the list.

While Ford Motor currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

(Almost) Everything You Need To Know About The EV Market Cover

Click the link below and we'll send you MarketBeat's guide to investing in electric vehicle technologies (EV) and which EV stocks show the most promise.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Ford Motor (F)
4.3443 of 5 stars
$12.18-0.4%4.93%11.28Hold$13.82
Morgan Stanley (MS)
4.6691 of 5 stars
$89.79+3.2%3.79%17.37Hold$95.48
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

  • CTMarkoch@msn.com

Editor & Contributing Author

Retirement, Individual Investing

Experience

Chris Markoch has been an editor & contributing writer for MarketBeat since 2018.

Areas of Expertise

Value investing, retirement stocks, dividend stocks

Education

Bachelor of Arts, The University of Akron

Past Experience

InvestorPlace


Featured Articles and Offers

Search Headlines: