Reduced Guidance Pushes Ford Stock Into Correction

Ford Motor Company stock has become too cheap to ignore following a decline of 11.3% since trading as high as $13.48 on Jan. 16. This correction is a buying opportunity given Ford’s P/E ratio of 10.86 and dividend yield of 4.99%. The stock is still 14.2% above its 52-week low of $10.47 set on Aug. 18, 2017.

Analysts expect the automaker to post earnings per share between 41 cents and 44 cents when it reports quarterly results after the closing bell on Wednesday, Jan. 24. Ford F-Series trucks should continue to be a driver of earnings following a rise of 9.3% in sales in 2017. However, Ford’s ambitious commitment of $11 billion to deliver more than 50 models of autonomous and totally electronic vehicles by 2022 could disappoint investors.

I for one will never buy a driverless car, and I will soon miss my 2004 Lincoln Town Car. My Town Car is haunted, as a faulty electrical system causes the alarm go off for no reason, the door locks to go up and down while driving around, and the internal lights to flash at will. What happens to a driverless car with electrical issues? (See also: Ford Is Self-Driving Leader: Report.)

Ford stock is cheap, with a P/E ratio of 10.86 and a dividend yield of 4.99%. …read more

Read more here: Reduced Guidance Pushes Ford Stock Into Correction

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