Related posts
Markets whiplash on Trump tariffsStocks climb before tariffsTSX flat as Wall Street fadesThis summary was created by AI, based on 17 opinions in the last 12 months.
Ford Motor Company has faced a series of challenges, including rising warranty costs and concerns over the impact of tariffs under the current US administration. While some analysts believe the company might rebound due to its potential for value, many express skepticism regarding its financial health and the sustainability of its dividend yield, which is high due to its declining stock price. The stock has seen negative momentum over the past few years, with earnings expectations faltering amidst a competitive automotive landscape that includes significant pressure from both traditional rivals and new entrants in the EV market. Despite being seen as undervalued based on price-to-earnings ratios compared to industry standards, many analysts warn that investing in Ford could be a value trap due to ongoing structural issues and muted growth projections in the auto industry.
Ford and GM have some of the lowest PEs around (7.3x and 4.3x) vs. the 22x S&P average. Ford pays a 6.2% dividend yield, while GM has a huge buyback plan. Incredibly cheap--until the tariffs started. Remember: the car-makers were a huge reason why Trump used tariffs in his first term which lead to the USMCA trade deal. But now Trump wants to take away the qualities that made US cars competitive and affordable. Today, the car-makers got a one-month reprieve from Trump's tariffs and shares jumped. But if the car-makers wind up paying these tariffs, are we okay with the U.S. replacing cheap Mexican labour with expensive U.S. union labour? That's why these stocks are so cheap--their earnings are in grave danger. Value traps. A 25% tariff on Mexican imports is a subsidy for foreign car companies like Kia.
F has seen negative momentum over the past few years, falling from a high of $25 in early 2022 to $9 today. It pays a good yield of 8.4%, but this is mostly high due to its falling stock price. Sales are expected to be mostly flat over the next few years, and earnings are expected to fall in the near term, with some growth thereafter. The auto industry was at one time a rising and popular theme, but we have since likely reached peak auto, and the forward growth is not as attractive as it once was. It is cheap (6X forward earnings), but so far it has proven to be a value trap. We would look for opportunities elsewhere in the industrials segment.
Unlock Premium - Try 5i Free
Ford Motor is a American stock, trading under the symbol F-N on the New York Stock Exchange (F). It is usually referred to as NYSE:F or F-N
In the last year, 36 stock analysts published opinions about F-N. 12 analysts recommended to BUY the stock. 12 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Ford Motor.
Ford Motor was recommended as a Top Pick by on . Read the latest stock experts ratings for Ford Motor.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
36 stock analysts on Stockchase covered Ford Motor In the last year. It is a trending stock that is worth watching.
On 2025-04-14, Ford Motor (F-N) stock closed at a price of $9.71.
No, caller's not crazy to want to buy. There will be a chance to reimagine what the car industry will be. Current US administration will be very partial to US manufacturing. Cross-border tariffs on auto parts won't affect it as much as people feared. Traditional US car companies may be better value than some of the more hyped players.