Ford Motor Company

The cemented legacy of Ford Motor spans for decades and continues to be one of the best stock performers in the market. In the auto sector, Ford Motors stands on its own and occupies a unique position across the world. As the revenue generation for the giant car manufacturer breaks new records, there is strong enthusiasm and optimism among investors to drive its stock price.

Ford Motor manufacturers a unique line of cars under its Lincoln and Ford brands. In the last five years, there has been a more innovative, compact, and diverse line of products from the automaker. This, in turn, has stabilized and increased its stock price.

The focus of this post is to shed a light on the historical performance of Ford’s stock and establish key parameters that would determine its future:

Ford Statistical Overview

Ford Stock Forecast 2022

As of 2022, Ford still holds 12.5% of the auto market share in the U.S., whereas it has 6.5% of the share in the European auto market. The company also holds a market share of 2.4% in the Chinese auto sector along with consolidated affiliates.

As of May 19, 2022, the stock price of Ford stands at $12.85. What’s interesting is that Ford’s stock is one of the most analyzed and reviewed stocks in the auto sector. But unlike other auto manufacturers, Ford’s stock has had consistent and stable growth in stock price.

In a broad sense, the stock price of automakers goes through several ups and downs in a single year. But unlike EV car manufacturers, Ford is still leveraging its traditional tactics to maintain and increase its stock price. According to the prediction of CNN’s analysts, the median target of Ford’s stock price would be $18.50 by December 30, 2022.

This represents an increase of 27.3% from 2021 stock price levels. On February 19, 2022, Ford’s official position became clear as the company set the highest target of $32 for its stock. On the other hand, Ford has the lowest target stock price of $11.

With our forecast model paired with an analytical analysis of Wall Street, we predict that Ford is expecting the target price to reach $23.13 by the end of 2022. Our technical stock analysis also forecast that Ford’s stock price would see an increase of 45% by September 30, 2022. The most favorable estimation predicts that Ford’s stock price would increase by over 70% by March 31, 2022.

Since January 12, 2022, there has been a decline in Ford’s stock price. However, our Ford stock forecast suggests that increased reported earnings of the company would have a positive impact on its stock price by the end of Q2 2022.

In Q1 2022, the swift 16% uptick in Ford’s stock price proves that it is still one of the most valuable automobile-traded stocks in the world. According to the quarterly reported earnings of Ford, the company lost over $3.1 by April 29, 2022. But this loss did not have a negative impact on its stock price. Ford points out that unlike in the past, its current Rivian stock investment managed to hit earnings.

Ford consistently meets with experienced Wall Street stock experts and analysts to focus on internal parameters that would increase its quarterly predicted earnings. In Q1 2022, the revenue generation of Ford was over $23.1 billion, which was even higher than the predicted earnings by Wall Street.

If you notice the ups and downs in the graph, you’ll see that when Ford recognizes its market strengths, it manages to rebound its stock value and overcomes weaknesses. But when you’re operations are global and deal with a volatile auto market, the stock rate can increase or decrease depending on the external factors.

After the roll out of its much anticipated electric-based pickup truck, F-150 Lightning, Ford received over 200,000 reservations for the model within a week. But like the model F-150 Lightning, sources indicate that Ford is planning to launch a more diverse line of electric vehicles in the market and invest billions in the production of EVs. If the production and launch plans of Ford pan out, it would be able to hit the maximum stock price by December 31, 2023.

Ford Stock 2021

By December 30, 2021, the total car sales of Ford account for 64% of the company’s revenue. Similarly, at the end of Q4 2021, Ford recorded one of its highest revenue around $136 billion. In 2021, Ford made a whopping profit of over $17.9 billion. And most of this profit came from the company’s investment in Rivian, the manufacturer of the electric trucks.

By Q4 2021, Ford’s total earnings were still stable due to the company’s ability to make instant changes after a worldwide computer chip shortage that delayed production. On November 6, 2021, the stock price of Ford reached $20 a share, which is the company’s highest share value since September 11, 2001.

There is high mutual trust and confidence among investors towards CEO Jim Farley. In fact, due to the turnaround plan of Jim Farley, the stock price started to increase. The truth is that since CEO Farley assumed the control of Ford on October 01, 2020, the stock prices of Ford have tripled. In fact, right after the announcement, Ford’s stock prices increased by 5.9%. With Farley at the helm, Ford has managed to increase its stock price by 129%.

By Q3 2021, it became clear that the Investors and shareholders are now counting on the new CEO of Ford to roll out more ambitious plans and get a competitive edge over other leading car manufacturers in the auto sector. Despite the weak EPS rating of Ford’s stock, the annual and quarterly earnings a share hint at the future growth potential of its stock.

In 2021, Ford started its transitional period and dive into the production of electric vehicles. 2021’s forward estimates ultimately point toward an unprecedented growth for the car manufacturer in the coming years. In terms of technical analysis, Ford stock saw a surge of 140% throughout 2021.

In fact, the 2022 stock price of Ford started at an all-time high, and the focus of the company is still to maintain this stock price threshold. One of the relative strengths of Ford is that it pulls back and recovers its sales, profit margins, and revenue growth that positively influence its stock price.

Ford Stock 2020

First, the total revenue generation of Ford was just $9 billion in 2020 due to the COVID-19 pandemic crisis. Second, like other automakers, Ford hit some of its lowest stock levels in 2020. What’s worse is that the stock price levels of Ford were already dwindling in 2019.

On April 27, Ford reported its Q1 results that managed to trigger a downward stock pressure. In 2020, most external variables were beyond the control and reach of Ford’s management. Ultimately, Ford’s stock was significantly devalued. On top of COVID-19, supply chain issues, recession fears, and rising inflation made matter worse for the automaker.

On March 23, 2020, Ford hit its lowest stock price of $4.11 due to COVID-19 lockdowns that led to fear in the stock market. Of course, the cynical market perception was going to end sooner or later but it did, however, created a drastic stock void for Ford.

Ford Stock 2019

As a legacy automaker, Ford has managed to keep up with the changing dynamics of the auto industry and push its stock price in an upward direction. Whether it’s a managerial change or the announcement of a new line of products from 2019 to 2022, Ford’s always moving forward and ahead of the tide.

In fact, it is one of the main reasons Ford’s shareholders have managed to earn considerably high returns for decades. Since the performance of automakers has become more erratic and the vitality and practicality of new trends are often not clear, Ford is adopting a different approach to boost its stock price and render high returns for its investors.

From the 1970s to the 1990s to the 2010s, Ford’s investors have had significant returns on initial investments and now expect robust stock performance throughout the year. In 2019, there was low enthusiasm among analysts and a push from the Ford management to improve its stock price.

However, on December 27, 2019, Ford’s stock price increased by 16% with short-term bearish trends. After a slow stock price growth in 2019, there was a lot of skepticism in the market. And COVID-19 pandemic just made things worse for the company’s stock in 2022.

In fact, by September 29, 2019, Ford’s sales were decreasing at the rate of 3.5% and market conditions were getting more stringent. By the end of September 30, 2019, Ford witnessed a sales decline of almost 5%. But with the control of new management and entrance into the EV market, Ford managed to turn the tables on its key auto competitors and started to increase its profit margins, revenue generation, net income, and stock price.

Ford Stock 2018

The graph shows that the stock price of Ford has come a long way since 2018. From 2013 to 2019, Ford’s stock levels started to gradually decline. In 2018, however, the degree and pace of this decline was slower. In 2018, Ford’s stock opened at $13.13 and closed at $12.00.

In 2018, there was consistent management conflict, added rumors, acquisitions, and a lack of ambitious drive that made it impractical for Ford’s stock to increase in the stock market. In fact, in 2018, Ford’s stock hit the lowest price point of $7.41.

In the first three quarters of 2018, you can say that the overall stock price performance was better than average. Ford understands that it operates in a highly volatile market and has had to roll out new initiatives to improve its stock value since the 1970s.

A decade ago in 2008, the stock price of Ford had plummeted to $8.1 but it was still not a historically low stock price. Although Ford had strong earnings in 2018 and 2019, its stock price levels were performing below the market expectations. And that’s mostly due to the fact that Ford does not like to have direct and open competitive drive with its close rivals.

Where to Buy Ford Stock Stocks

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Conclusion

With hundreds and thousands of employees and a multitude of operational activities, Ford operates as one of the biggest auto manufacturers in the world. Henry Ford, the founder of the company, has left a great legacy for its successors. In most cases, the management and leadership at Ford Motors plan to significantly expand and optimize its operations and roll out a new line of products.

Although Ford Motor’s annual earnings continue to grow through new and reinvestment efforts, the company’s investors have had significant dividend cuts for the last ten years. And like EV auto manufacturers, Ford offers a conservative-style payout ratio that turns its dividend more sustainable.

In hindsight, investors from all backgrounds want to buy and invest in Ford’s stock for its stable growth and rising stock streak over the last six quarters. In 2022, car stocks are bound to be volatile but legacy manufacturers like Ford intend to thrive even in a changing and complex market environment.