{"id":1572,"date":"2023-02-15T09:45:13","date_gmt":"2023-02-15T09:45:13","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1572"},"modified":"2023-02-15T09:45:13","modified_gmt":"2023-02-15T09:45:13","slug":"ford-motor-a-pitstop-before-zooming-to-the-distance","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/15\/ford-motor-a-pitstop-before-zooming-to-the-distance\/","title":{"rendered":"Ford: a Pitstop Before Zooming to the Distance?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1572\" class=\"elementor elementor-1572\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-563e1c0d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"563e1c0d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-60fe8f90\" data-id=\"60fe8f90\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-74feb9fa elementor-widget elementor-widget-text-editor\" data-id=\"74feb9fa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">A bad earnings miss for the Ford Motor Company didn\u2019t send the stock crashing down. Could it be a sign of strength and potential gains<br \/><br \/><\/span><span style=\"font-weight: 400;\">Today we dive into the strength of Ford and decide if it is a stock worth investing in.<\/span><\/p><p><span style=\"font-weight: 400;\">Despite a <a href=\"https:\/\/www.groupcaliber.com\/automotive-industry-outlook-2022-the-challenging-future-and-a-new-mobility-paradigm\/\">turbulent 2022 for the automotive industry<\/a>, 2023\u2019s earning season started strong, with\u00a0 General Motors&#8217; strong fourth-quarter results exceeding expectations and leading to increased investor enthusiasm.<\/span><\/p><p><span style=\"font-weight: 400;\">The positive earnings, driven by strong revenue, caused a rise in GM&#8217;s stock price, and also resulted in anticipation of similar results for other motor companies like Ford, leading to a rise in its stock as well.<\/span><\/p><p><span style=\"font-weight: 400;\">However, on February 2, <a href=\"https:\/\/www.investors.com\/news\/ford-earnings-due-as-automaker-expands-mach-e-strategy\/#:~:text=Ford%20Earnings&amp;text=In%20the%20year%2Dago%20quarter,fell%20well%20short%20of%20estimates.\">Ford surprisingly released weak fourth-quarter results<\/a>, contrary to Wall Street&#8217;s expectations. <br \/><br \/>Moreover, the company&#8217;s management has yet to disclose specific details about how they plan to address their issues.<\/span><\/p><p><span style=\"font-weight: 400;\">Despite this disappointing turn of events, Ford\u2019s stock price surprisingly held well, showing strength in the face of bad news.<\/span><\/p><p><span style=\"font-weight: 400;\">Could this be a precursor for an upwards move?<\/span><\/p><p><span style=\"font-family: inherit;\">In spite of the highly competitive nature of the auto industry, Ford, a century-old brand, has managed to maintain its relevance. <br \/><br \/>This has remained true even with the growing market share of electric vehicles, as Ford has shifted its focus towards the EV segment.<\/span><\/p><p><span style=\"font-weight: 400;\">The recent improvement in economic conditions in the Eurozone, coupled with the anticipated stabilization of the US economy, may rekindle the interest of both consumers and investors in Ford.<\/span><\/p><p><span style=\"font-family: inherit;\">Furthermore, the reopening of supply chains and input costs in China could help build confidence among cyclical investors waiting on the sidelines.<\/span><\/p><p><span style=\"font-weight: 400;\">You see, Ford also has lots of bright spots going for it, but would it be enough to entice the investors to go on their side?<\/span><\/p><p><span style=\"font-weight: 400;\">Hop on in to find out!<\/span><\/p><p><em><strong>Related Article To Read:<\/strong> <a href=\"https:\/\/tradersontrend.com\/is-alibaba-finally-out-of-the-caves\/\">Is Alibaba Finally Out of the Caves?<\/a><br \/><br \/><\/em><b style=\"font-size: 24.5px; font-family: inherit;\">The Bull Case for Ford<br \/><br \/><\/b><span style=\"font-family: inherit;\">More than 20% of Ford&#8217;s sales come from Europe, making the Russia-Ukraine conflict a major concern for investors. <br \/><br \/>However, with recent declines in fossil fuel prices, most analysts have upgraded their economic outlook for the Euro region.<\/span><\/p><p><span style=\"font-weight: 400;\">The improved economic outlook is expected to boost discretionary items, as renewed consumer confidence could drive demand.<\/span><\/p><p>This creates a favorable situation for Ford, which could benefit from this tailwind.<\/p><p><span style=\"font-weight: 400;\">Global economic recovery in the second half of the year is expected to lead to a rebound in conventional auto sales, which is beneficial for Ford as the majority of the U.S. and global middle class still prefer conventional cars.<\/span><\/p><p><span style=\"font-weight: 400;\">The economic comeback is likely to benefit conventional cars, as the majority of the U.S. and global middle class still prefer to purchase them.<\/span><\/p><p>In Europe and North America, the average sale price of EVs has actually risen since 2015, as mentioned in my recent article about Tesla.<\/p><p><span style=\"font-weight: 400;\">Although Ford&#8217;s sales in China currently only represent a small portion of its revenue mix, the country&#8217;s pandemic lockdown re-openings still have serious benefits.<\/span><\/p><p>For one, it offers Ford an opportunity to enter the prospective Chinese market.<\/p><p><span style=\"font-weight: 400;\">Additionally, the <a href=\"https:\/\/www.economist.com\/leaders\/2023\/01\/05\/how-chinas-reopening-will-disrupt-the-world-economy\">reopening of China<\/a> could lead to more efficient input costs, and increased production for companies such as Ford, by streamlining supply chains, which may lead to an improved bottom line for Ford, and hopefully, translate into stock gains.<\/span><\/p><p><span style=\"font-weight: 400;\">When the economic recovery finally occurs, it is likely to drive global auto sales to new record levels, and primarily benefit car manufacturers that cater to the middle class such as Ford.<br \/><br \/><\/span><\/p><h3><b style=\"font-family: inherit;\">Potholes Along the Way<\/b><\/h3><p><span style=\"font-weight: 400;\"><br \/>Ford has traditionally depended on its North American business to generate profits, which is still performing well, but its international business is facing ongoing challenges.<\/span><\/p><p>Its European results fell below expectations, and its business in China continues to lose momentum, according to some metrics.<\/p><p><span style=\"font-weight: 400;\">Investors typically prefer to hear about growth strategies, but despite negatively affecting revenue in the short term, the decisions to prioritize its strengths in Europe and China could ultimately enhance profitability, but reap the benefits in the future.<\/span><\/p><p><span style=\"font-weight: 400;\">Going back to Ford&#8217;s fourth quarter, investors had to deal with plenty of bad news, but the most alarming aspect was that the management has been ambiguous in providing detailed answers to shareholders.<\/span><\/p><p><span style=\"font-weight: 400;\">Ford has acknowledged that it has significant issues with its industrial system, and must improve its manufacturing and engineering procedures throughout the entire process, missing out on around $2 billion in profits that were under its control.<\/span><\/p><p><span style=\"font-weight: 400;\">In addition to that $2 billion in missed profits, the large special items were possibly even worse.<\/span><\/p><p>These special items for the full year of 2022 included a massive $7.4 billion mark-to-market net loss on its Rivian investment, and an additional $2.7 billion impairment on its Argo AI investment.<\/p><p><em><strong>Related Article To Read: <\/strong><a href=\"https:\/\/tradersontrend.com\/crypto-sector-charges-like-a-bull-as-bitcoin-reaches-new-highs-investors-look-for-ways-to-profit\/\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Crypto Sector Charges Like a Bull as Bitcoin Reaches New Highs, Investors Look for Ways to Profit&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13057,&quot;3&quot;:{&quot;1&quot;:0},&quot;11&quot;:3,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:9}\">Crypto Sector Charges Like a Bull as Bitcoin Reaches New Highs, Investors Look for Ways to Profit<\/span><\/a><br \/><br \/><\/em><\/p><h3><b style=\"font-family: inherit;\">Just a Pitstop?<\/b><\/h3><p><span style=\"font-family: inherit;\"><br \/>In the long run, it is good that Ford is staying loyal to its established models, instead of putting all its efforts into EVs.<\/span><\/p><p>I anticipate that the transition to EVs will be significantly costly for consumers, which implies that Ford can still provide affordable options, as other companies may struggle with rising input costs and limited materials.<\/p><p><span style=\"font-family: inherit;\">Ford also presents a cyclical investment opportunity, that stands to gain from the shift in the economic cycle. <br \/><br \/>After a challenging start to the decade, it is expected to benefit from the return to more normal economic conditions.<\/span><\/p><p><span style=\"font-family: inherit;\">While it may not appear in the short term, positive news regarding the global economy may increase as we approach the second half of the year. <br \/><br \/>Contributing factors could include the post-zero-Covid economic recovery in China, the easing of monetary tightening, and potential discussions of reversing interest rate trends.<\/span><\/p><p><span style=\"font-family: inherit;\">If these happen sooner rather than later, all these should benefit Ford and with all things considered, now might just be the opportunity for investors to ride this stock, while it&#8217;s still having a pit stop!<\/span><\/p><p><em>For More Stocks And Investment News, Click <a href=\"https:\/\/tradersontrend.com\/\">Here<\/a>.<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A bad earnings miss for the Ford Motor Company didn\u2019t send the stock crashing down. Could it be a sign of strength and potential gains Today we dive into the strength of Ford and decide if it is a stock worth investing in. Despite a turbulent 2022 for the automotive industry, 2023\u2019s earning season started&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[260,261,565],"class_list":["post-1572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-ford","tag-ford-motors","tag-stock-and-investment-news"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1572"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1573"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}