Why Ford Is Poised to Keep Rallying
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, U.S. auto giant Ford Motor has earned a respected four-star ranking.
With that in mind, let's take a closer look at Ford and see what CAPS investors are saying about the stock right now.
Fordfacts
Headquarters (Founded) | Dearborn, Mich. (1903) |
Market Cap | $53.8 billion |
Industry | Automobile manufacturers |
Trailing-12-Month Revenue | $132.4 billion |
Management | CEO Alan Mulally (since 2006) |
Return on Equity (Average, Past 3 Years) | 4.5% |
Cash/Debt | $24.1 billion / $101.0 billion |
Dividend Yield | 2.8% |
Competitors | General Motors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 80% of the 12,035 members who have rated Ford believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star TMFBlacknGold, touched on the tailwinds working in Ford's favor:
Ford is uniquely positioned to lead the pack in the new [Corporate Average Fuel Economy] (CAFE) standards for vehicles with its Eco-boost engines and its recent deployment of the CMAX line (including an electric CMAX Energi). The CMAX models could really steal some of the Prius' spotlight quite easily. In fact, I think it is entirely possible for the Energi to win the Car of the Year Award for 2013, making it two years in a row for an electric vehicle (Tesla in 2012).
There is still a long way to go between 40 mpg and 54.5 mpg (the current final target), but new advances in materials and body design should shed weight over the next several years. In fact, Ford -- like other car companies -- is heavily invested in carbon fiber car parts, which could drop over 700 lbs from the weight of a vehicle and dramatically increase fuel economy.
Of course, this short pitch doesn't even come close to telling the entire story for Ford. You're in luck, though. The Fool's brand new premium report on Ford tells all sides of the story for one of the most compelling turnaround stories in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Ford Is Poised to Keep Rallying originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors and owns shares of Ford. 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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