Ford Motor Company (F), a global automotive leader with a market cap of $41.3 billion, has seen its stock decline 30% below its 52-week high of $14.85. The company’s shares have underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) gains over the past year, losing 6.9% compared to XLY’s 34.7%. Ford’s share price has also declined significantly on a YTD basis, down 14.8%, as it struggles with margin pressures and challenges adapting to the electric vehicle (EV) transition.
The company’s Q3 earnings report delivered revenue of $46.2 billion, beating analyst estimates, but sales volumes remained flat year-over-year. Ford’s adjusted EPS reached $0.49, slightly ahead of consensus. Notably, free cash flow margin improved to 7.6% from 5.4%. Despite this, the stock has a consensus “Hold” rating from 20 covering analysts and a mean price target of $11.81, indicating a potential upside of 13.7%.
General Motors Company (GM) is significantly outperforming Ford, with its shares rising by 56.5% over the past year. Analysts are cautious about Ford’s recent performance and view it as underperforming in comparison to GM.
Source: https://www.nasdaq.com/articles/ford-stock-f-underperforming-consumer-cyclical-sector