• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is January 2023 a good month for buying Ford shares?
Investing

Is January 2023 a good month for buying Ford shares?

by December 31, 2022
by December 31, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Ford Motor (NYSE: F) shares have weakened from $14.36 to $10.90 since the beginning of December 2022, and the current price stands around $11.63.

Ford reported strong third-quarter earnings results in October, but rising interest rates, a darkening macro backdrop, and higher input costs have put pressure on auto stocks again in December 2022.

Ford will raise the price of its F-150 Lightning Pro electric truck again

Ford’s business has proven improvements throughout the third fiscal quarter, and the company reported strong earnings results in October. Total revenue has increased by 12% Y/Y to $37.2 billion, while the GAAP EPS was $0.30.

The company’s management remains optimistic about the upcoming quarters in terms of growth, and it expects cash flow over the future planning period to be more than sufficient to fund growth priorities.

Adjusted free cash flow for the full year should be between $9.5 billion and $10 billion – up from $5.5 billion to $6.5 billion on strength in the company’s automotive operations.

It is also important to note that the company’s management expects a full-year adjusted EBIT of about $11.5 billion, which is approximately 10% higher than in 2021.

Despite this, Ford Motor shares remain under pressure mainly due to the aggressive monetary policy from the U.S. Central bank, geopolitical uncertainty, and higher manufacturing costs.

Investors continue to worry that an aggressive Federal Reserve will push the economy into a deep recession that could dent corporate earnings and stock markets.

According to Deloitte Insights, there is a 45% correlation between the depth of a recession and reduced manufacturing output in the automotive industry.

Ford Motor continues to focus on speeding up electric vehicle adoption, and costs are accelerating especially quickly for those automakers investing heavily in their respective E.V. transitions.

The company already announced that it will raise the price of its F-150 Lightning Pro electric truck in 2023 amid rising component costs and persistent supply chain challenges.

The positive fact is Ford has the ability to mitigate cost pressure vs. smaller peers, and with a market capitalization of $46 billion, shares of this company are reasonably valued.

Ford trades at less than three times TTM EBITDA, and compared to Toyota Motor Corporation (NYSE: T.M.), Ford is cheaper on a price-to-sales basis.

According price-to-sales ratio (market capitalization/revenues), Ford shares are trading at 0.32, which is nearly three times lower than the price-to-sales ratio of Toyota Motor Corporation, which is trading at a P/S of 0.87.

Despite this, investors should consider that if the U.S. stock market enters a more significant correction phase, the shares of Ford could be at even lower price levels.

Technical analysis

Ford Motor shares have weakened 50% since January 13, 2022, and the risk of further decline is still not over.

Data source: tradingview.com

The important support level stands at $10, while $14 represents the first resistance level. If the price falls below $10, it would be a “sell” signal, and we have the open way to $8 or even below.

Conversely, if the price jumps above $14, the next target could be resistance at $16.

Summary

Ford Motor shares have weakened 50% since January 13, 2022, and the risk of further decline is still not over. Rising interest rates, a darkening macro backdrop, and higher input costs continue to weigh on the automotive industry.

The post Is January 2023 a good month for buying Ford shares? appeared first on Invezz.

You Might Also Like
  • Options Vega Explained: Price Sensitivity To Volatility
  • Salesforce is poorly positioned for a recession: Sophie Lund-Yates
  • Long Call Option Strategy
  • Apple stock claims a near 2-year low, and sellers still look aggressive
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Dow Jones, the S&P 500, and Nasdaq price forecast after the bad performance in 2022
next post
Pilot Shortage: A Story of Stalled Supply and Rising Demand

You may also like

Salesforce is poorly positioned for a recession: Sophie Lund-Yates

December 8, 2022

Tesco vs Ocado: Better buy as UK retail sales slip

December 16, 2022

CAC 40 index forecast after S&P cuts France’s outlook to...

December 4, 2022

World Bank warns of global recession as growth forecasts cut...

January 11, 2023

Jim Cramer sees more upside in the Etsy stock

December 1, 2022

Straddle vs. Strangle Options Strategy

February 8, 2023

25+ US economy statistics: forecast, trends and facts for 2023

January 9, 2023

Cramer reveals a retail stock he says is ‘chronically underestimated’

November 22, 2022

Here’s what Fed Chair Jerome Powell’s remarks mean for the...

November 30, 2022

Coinbase stock soars 11% amid $100 million settlement with NY...

January 4, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    “Buy the close, sell the open”...

    November 28, 2022

    Disney shares could rally up to...

    December 20, 2022

    4 market-moving events to watch in...

    November 29, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here