Ford Motor Company is valued at a market cap of $40.8 billion and is globally known for developing a range of popular trucks, cars, and SUVs. The company is also actively investing in electric mobility, vehicle connectivity technology, and advanced driver assistance programs. Ford’s stated goal is a future of smart, eco-friendly transportation.
Ford Falls Into Large-Cap Stocks
Companies with a value of $10 billion or more usually fall into the category of Large Cap Stocks. Ford Motor Company fits perfectly into this category as its market cap far exceeds this threshold. Ford is also incredibly influential in the auto industry thanks to years of dominance. Some key strengths for Ford include its brand legacy, truck market leadership, and strong push toward digital and EV innovation.
Ford has over 120 years of experience in the industry and enjoys a strong global reputation for quality and durability. The Ford F-150 pickup has long been a sales leader around the world and in the USA. The company also benefits greatly from an integrated business model, such as its in-house financing segment, which helps customers and dealerships with auto loans.
Ford is currently trading roughly 31% below its 52-week high, which was hit on July 18, 2024. However, Ford Motor has soared by nearly 7% over the last three months, outpacing the S&P 500’s 4.6% increase in that time.
Shares Up On a YTD Basis
On a YTD basis, Ford’s shares are up by 3.6%, which also outperforms the S&P 500’s number of 2% on the YTD. However, over the long term, Ford’s shares have gone down 15% over the last 52 weeks, which lags behind the S&P 500’s 12.1% increase over the same time frame.
To confirm its latest trend, Ford has been trending over its 50-day moving average since late April. Despite that, the company’s shares have still been lagging below its 200-day moving average since July 2024, with only a few fluctuations.
Ford delivered its first quarter results in May, showing that shares had surged 2.7% in the trading session. However, Ford’s revenue has gone down by 5% year-over-year to $40.7 billion. This is mostly due to lower sales in the Ford Blue and Ford Pro segments.
A Positive Note For Ford
Despite a steep year-over-year decline in Ford’s adjusted EPS, there are some positive notes. For example, Ford achieved its third consecutive quarter of year-over-year cost reductions, without counting costs related to tariffs. The total costs and expenses for the first quarter of the year are down by nearly 3% compared to the same time last year.
Not only that, but Ford Pro managed to gain ground in the most profitable segments of the USA and European customer markets. Ford Motor is still lagging behind General Motors in gains over the last 52 weeks. Investors and analysts remain cautious about Ford’s overall prospects, but the positive numbers seem to show that Ford is heading in the right direction.
