Ford Motor Co Stock Buy Recommendation Reiterated (F)

NEW YORK (TheStreet) -- Ford Motor (NYSE:F) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- .

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Highlights from the ratings report include:

• F, with its decline in revenue, underperformed when compared the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• FORD MOTOR CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FORD MOTOR CO increased its bottom line by earning $5.01 versus $1.59 in the prior year. For the next year, the market is expecting a contraction of 74.0% in earnings ($1.30 versus $5.01).
• Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 55.93% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 56.6% when compared to the same quarter one year ago, falling from $2,398.00 million to $1,040.00 million.

Ford Motor Company engages in the development, manufacture, distribution, and service of vehicles and related parts worldwide. The company operates through two sectors, Automotive and Financial Services. The automotive sector offers vehicles primarily under the Ford and Lincoln brand names. The company has a P/E ratio of 2, equal to the average automotive industry P/E ratioand below the S&P 500 P/E ratio of 17.7. Ford has a market cap of $34.61 billion and is part of the consumer goods sector and automotive industry. Shares are down 16% year to date as of the close of trading on Wednesday.

You can view the full Ford Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

 

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