Ford has been a very good stock for the past year. It has almost given a 100% return and there’s no doubt that it will hit this mark in the next few months. The stock currently has been trending up and down for the past 6 months. It’s time for it to make it’s move up again. Technically, you can see that it really hasn’t moved much but by all means it is on an up-trend still.
Fundamentally, Ford has been making great strides to grow it’s market share internationally. It already has taken back the North American market by storm. Their car sales are off-the-charts and they are continually breaking new highs. In China, they are growing rapidly. Their Ford Fusion fits the bill for many of the chinese population as it’s affordable and it gets great mileage. In Europe, they are just starting out. They are building factories and increasing their growth into the market.
They are not as big as Toyota or Honda but that gives them more room to grow. First, their PE ratio is lower than these car giants; however, they also have such a small share of the market in international countries that they can rapidly make their footprint bigger. This means better stock prices and better growth ahead for them.
This is a great long term play. Their stock is currently trading at $16.91 and this would be a good entry.
Leave a Reply