Why China Will Be Huge for Ford's Stock


Ford launched its Kuga in China earlier this year. The Chinese-market version of the Escape, the Kuga has already become a strong seller in the country's crowded SUV market. Photo credit: Ford Motor Co.

Ford's stock price has gained about 30% so far this year. Those gains have drawn the attention of more and more investors, as have Ford's results here in North America. A booming U.S. auto market and a series of strong new products have given Ford big profits -- and outsized profit margins -- in its home region.

But what those investors might not realize is that the next big story for Ford is already starting to unfold overseas. Ford has committed nearly $5 billion to its biggest building boom in decades -- in Asia.

Ford was a late entrant to the booming Chinese auto market, but it's already making up for lost time. As Motley Fool contributor John Rosevear explains in this short video, Ford's big investment in China -- and the success that the company is already finding there -- makes it likely that Ford's stock will continue to post outsized gains for the next few years.

Ford isn't the only company set to profit big in China
Already, China's new-car market has grown into the world's largest. And experts believe that this boom will continue for several more years, as more and more Chinese join the middle class and seek to buy their first new cars. Ford is one of the two global automakers that Motley Fool analysts believe are poised to surge along with China's middle class. Their latest report explains the case for both automakers in full detail. It's completely free for Fool readers -- just click here to download it now.

The article Why China Will Be Huge for Ford's Stock originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends Ford. The Motley Fool 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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