Does Ford Stock Have Hidden Earnings Power?


Despite a run of about 50% in the last year, Ford stock has a bullish case given certain realities overseas. Despite the first signs of growth in the automotive sector finally showing up in April, Ford stock is likely to be affected by the company's loss on its European operation. This may be largely hiding some of the strength of the overall numbers and cause the market to undervalue Ford stock in the near term. Furthermore, while Ford is leading the way, the European situation is poised to benefit other automakers, including General Motors .

In the video below, contributor Doug Ehrman discusses the bullish case for Ford, some of the risk factors involved, and why even a less optimistic view may still favor owning Ford stock.

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Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends General Motors. It recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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