Key Stats for Ford Stock
- Price change for Ford stock in Last 6 Months: 8%
- $F Stock Price as of Sep. 24: $13
- 52-Week High: $18
- $F Stock Price Target: $16
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What Happened?
Hyundai is on track to outsell Ford (F) in the U.S. for a full quarter for the first time ever. That’s according to a new forecast from Cox Automotive released Thursday.
Cox expects Hyundai’s Q3 sales to rise 6.5% to 511,421 vehicles. Ford’s sales are expected to fall 7.1% to 504,172.
If the forecast holds, Hyundai would become the third best-selling automaker in the U.S., behind only GM and Toyota.
Ford pushed back. It said it still outsold Hyundai through August. It also blamed an uneven playing field.
Ford said tariffs, currency, labor costs, and supply chains make it “very advantageous” to build cars in Korea instead of the U.S.
CEO Jim Farley made a similar point on Ford’s Q2 earnings call. He said Japanese and South Korean imports carry a huge currency advantage and face only a modest 15% tariff.
Two problems stand out.
First, F-Series production took a hit after supplier fires disrupted aluminum supply from Novelis. Ford expects these issues to cost about $1.5 billion this year. F-Series inventory sat at around 45 days of supply, which Ford itself called very lean.
Second, buyers want hybrids. Gas prices are averaging $4.48 per gallon, which hurts sales of big trucks and SUVs. Cox analysts said Ford and GM don’t have enough hybrids to meet that demand. Ford does sell hybrid versions of the Maverick and F-150.
The Maverick Hybrid posted record sales in the first half, and Ford plans to add hybrids across its lineup over the next several years.
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What the Market Is Telling Us About Ford Stock
Losing a sales ranking stings, but it doesn’t tell the full story for Ford stock.
Ford is making more money even while selling fewer vehicles. In Q2, revenue fell 4% to $48.3 billion. But adjusted EBIT, a measure of operating profit, rose 17% to $2.5 billion.
Ford also raised its full-year EBIT outlook to $10 billion to $11 billion. That’s $1 billion higher at the midpoint.
Supply should improve soon. Ford’s Oakville plant is set to launch in Q4, adding room for up to 100,000 more Super Duty trucks.
So Ford stock investors face a mixed picture.
Sales volume is slipping, and Korean rivals are gaining. But profits are rising, and truck supply is coming back.
The bigger test for Ford stock will be whether it can win back hybrid buyers before competitors lock them in.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
