The market is trending higher, which is a good reason for Ford stock (NYSE:F) to rise more than 8% in the week ending October 5.
Morgan Stanley (NYSE: MS) added gasoline to the flames by raising its rating on Ford stock (NYSE:F) from “equal weight” to “overweight” and setting a price objective of $14. However, the stock only saw a little boost due to the announcement.
This combination might be the reason traders find chances. However, the overall revenue picture may jeopardize Ford stock’s (NYSE:F) recent surge. The corporation may have reduced expectations to the point where it can’t help but jump over them when it announces profits in late October. Finally, the Ford stock projection may leave investors wanting more.
Market Analysis of Ford Stock
On October 4, Ford stated that its September sales were lower than expected. On a year-over-year basis, the firm was also down (142,644 vs. 156,614 in the prior year). The disclosure comes just two weeks after the manufacturer revealed $1 billion in unexpected supply chain expenditures.
Ford’s revenue in the first half of 2019 is lower than the previous year’s. Because the last two years have been aberrations for every carmaker, 2019 is a more meaningful reference point for Ford.
Ford’s revenue is predicted to expand at a 7% annual rate over the next five years. However, investors may want to wait for a quarter or two to see whether those figures alter to reflect the economy’s cyclical difficulties.
Earnings are one area where these challenges may impact the company’s performance. Ford’s profits are now substantially above pre-pandemic levels, which should encourage a stock price increase, right? However, this is Ford’s peak in terms of profits per share, which are forecast to fall by 2.5% over the following five years.
What Investors Want to See Will Be Seen
As more electric cars hit the road, investors will become increasingly interested in EV stocks. Investors may assume that if they wait for Ford to provide sales and profit figures, they will lose out on potential gains. However, the macroeconomic prognosis indicates that demand for all kinds of automobiles will continue as planned.
Ford stock (NYSE:F) now seems to be a trade rather than an investment. If you are interested in trading options or short selling, you may uncover an opportunity. Ford stock is inexpensive, but it may not remain so when the economy starts to feel the consequences of increasing interest rates.
Ford Motor Company is a component of the Entrepreneur Index, which monitors some of the world’s top publicly listed firms started and controlled by entrepreneurs.
Featured Image- Megapixl @ Neydtstock
Author Okoro Chinedu 
