2. Ford (F) is the second-largest U.S. carmaker.
Fundamentals: Ford's 12-month sales have increased 19%. Third-quarter net income rocketed 69% to $1.7 billion. Earnings per share climbed 48% to 43 cents. Revenue declined 1.3%. The operating margin rose from 7.7% to 10%. Ford had $33 billion of cash and $117 billion of debt at quarter's end. Ford is running a shareholders' deficit. However, after enduring four consecutive quarterly losses in 2008 and 2009, it has returned to profitability.
Valuation: Ford's stock trades at a trailing earnings multiple of 9.4, a forward earnings multiple of 7.9 and a sales multiple of 0.4, 39%, 63% and 53% discounts to automobile industry averages. It's costly based on cash flow per share. Still, a PEG ratio of 0.1 represents a 90% discount to estimated fair value. Morgan Stanley's bullish target is $31, implying the stock might double.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV