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Goldman's 11 Best Consumer Stocks for 2011

6. Ford Motor (F - Get Report) manufactures cars and trucks.

The Dearborn, Michigan-based company reported fourth-quarter results Friday. Ford posted adjusted quarterly earnings of 30 cents, missing analysts' consensus estimate by 38%. Its stock tumbled more than 13% in reaction to the results. Ford beat by a double-digit percentage in the six previous quarters. Ford has an average earnings beat rate of 48%. Its top-line figure, at nearly $32 billion, representing an 8.3% year-over-year decline, beat the consensus target by 14%. Despite a poor report, Goldman is still bullish on Ford's prospects, saying that the EBITDA and free cash flow story is "far from over" at Ford.

Goldman lowered its 6-month price target on Ford to $20, still suggesting an attractive 24% return. Goldman has incorporated higher fixed-cost inflation and product development and manufacturing costs into its model. Although these capital outlays have spurred a mass migration out of the stock, Goldman views them as a positive long-term strategic move, which will assist Ford in strengthening product leadership. Ford's stock trades at a trailing P/E of 9.1 and a forward P/E of 7.6, 42% and 65% automotive industry discounts.
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