3 Things to Watch With Ford's Stock

Updated

There are several things Ford shareholders, or even potential investors, need to keep an eye on. The big one is Europe. Ford will lose at least $1.5 billion in Europe this year and expects to lose about the same amount next year. The company announced a big restructuring plan that will reduce capacity by 18% in the region and introduce 15 new models, but investors need to watch closely as this strategy plays out. Another area to watch is operating margins, which were terrific in North America last quarter but lagged in 2011. Finally, investors need to monitor how strong sales are for Ford's new vehicles, particularly the Fusion and Escape. Check out the following video for more on what Ford investors need to keep an eye on.

Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But Ford's stock still trades at a seemingly very cheap 7 times forward earnings. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.


The article 3 Things to Watch With Ford's Stock originally appeared on Fool.com.

Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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