Is the Current Price Offering a Rare Opportunity to Buy Ford Stock?

2 days ago 2
  • Shares successful the car shaper merchantability for a ungraded inexpensive valuation.

  • The banal has an charismatic dividend yield.

  • I'm not impressed.

  • 10 stocks we similar amended than Ford Motor Company ›

Ford Motor Company (NYSE: F) investors person each crushed to cheer these days. The Detroit car shaper has had a large year, with the stock terms soaring 35% done Dec. 24. And contempt the awesome showing, the valuation mightiness inactive beryllium a large attraction for those funny successful the stock.

Is the existent terms providing investors with a uncommon accidental to bargain this automotive stock?

Ford logo connected  an car  grille.

Image source: Getty Images.

Ford banal is cheap. Investors tin adhd the concern to their portfolios by paying a forward price-to-earnings aggregate of conscionable 9.5. It tin look intolerable to find shares successful a well-known institution trading astatine specified a bargain level. Meanwhile, the terms makes the dividend output 4.5%, and income investors volition admit this setup.

Such a debased valuation is enticing, however, this isn't a uncommon accidental worthy taking vantage of. In the past decade, Ford shares person produced a full instrumentality of lone 64%, coming up alarmingly abbreviated of the wide market.

I judge this reveals areas wherever Ford struggles, namely debased maturation prospects, compressed nett margins, immense superior expenditure requirements, aggravated competition, and demand that's delicate to economical cycles. These are each adverse qualities that semipermanent investors should question to debar erstwhile identifying companies deserving of their capital.

Before you bargain banal successful Ford Motor Company, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Ford Motor Company wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $509,470!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,167,988!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 991% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.

See the 10 stocks »

*Stock Advisor returns arsenic of December 22, 2025

Read Entire Article