2024-02-01 11:15:36 ET
Summary
- Negative sentiment surrounding Ford's electric vehicle line-up is exaggerated. EPS estimates have fallen as investors appear too bearish.
- Ford's strong sales report for Q4'23 could indicate that the car brand will beat low EPS estimates next week.
- Ford's EV sales soared in Q4'23 and FY 2023, driven by demand for the F-150 Lightning pickup truck.
- The risk profile for Ford is very attractive pre-Q4 earnings release.
Ford's ( F ) recent announcement to reduce F-150 production has led to the creation of negative investor sentiment ahead of the car brand's Q4'23 results. Earnings for the fourth-quarter are due next Tuesday, on Feb 6, 2024, and I believe Ford could be set for a burst of momentum and a potential breakout to the upside. Earnings estimates have been revised downwards lately over concerns of slowing growth. However, Ford's sales report from earlier this month strongly indicates that investors are overreacting to concerns over EV demand, in my opinion. Given that expectations are driven quite low ahead of Q4 and that the U.S. economy favors cyclical auto investments, I believe Ford has a lot of surprise potential next week!...
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Ford: Still A Buy Ahead Of Q4