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What's Going On With Ford Shares?

Author: Henry Khederian | July 11, 2024 03:05pm

Ford Motor Co (NYSE:F) shares are trading higher by 2.1% to $13.46 during Thursday’s session. Shares of several stocks in the broader automotive sector are trading higher following June CPI Data. The Department of Energy has also declared a $1.7 billion funding to transition 11 automotive facilities, currently closed or threatened with closure, into manufacturing sites for electric vehicles and their supply chains.

With CPI inflation slowing more than expected, it signals to the market that inflation is moving closer to the Federal Reserve’s target of 2%. This increases the likelihood that the Federal Reserve will cut interest rates sooner rather than later.

Lower interest rates reduce borrowing costs for consumers and businesses. For Ford, this means cheaper financing options for both the company and its customers. Consumers are more likely to finance new vehicle purchases when interest rates are low, potentially boosting sales for Ford.

As inflation decreases, the purchasing power of consumers in general increases because their real incomes go further. This can lead to higher consumer spending, particularly in discretionary areas like automobile purchases.

Read Also: Costco Hikes Membership Fees At Long Last; Analysts Caution Of ‘Sell The News’ Event, Point To Stock Underperformance After Last 3 Hikes

Is Ford A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Ford Motor, you'll notice that earnings in its last quarter grew 16.67% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Ford Motor's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is projected to compress 60.93% in the current quarter when compared with last year. That places it below similar businesses Tesla, Toyota Motor, General Motors in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Ford Motor's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

F has a 52-week high of $15.42 and a 52-week low of $9.63.

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