Investors are too emotional about Ford (F). When bankruptcy fears loomed in 2008, shares fell below $2 (even though bankruptcy looked highly unlikely). When the auto industry got back on its feet in 2009 and 2010, investors couldn't get enough of this stock, quickly pushing it to $20 as analysts spoke of $25 and $30 price targets.
These days, a so-so economy has pushed Ford right back out of favor, and its stock has fallen nearly 40% this year, down near $10.The lousy stock performance is at odds with the reality on the ground. Ford is selling more cars and trucks -- and making more money on every one sold. Sales are on track to rise 15% this year to $128 billion. Sure, that's a far cry from the $177 billion in revenue Ford had back in 2005. Then again, Ford only managed to earn $0.86 a share that year. Thanks to robust profit margins these days, Ford will earn nearly $2 a share this year.
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