This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pump the Brakes on Ford Shares

NEW YORK ( TheStreet) -- Since mid-May, shares of Ford (F - Get Report) have gained some strong upward momentum on heavier-than-usual volume.

It appeared as though investors were expecting a solid sales number from the automaker when the monthly figure was released on June 3.

From the close on Friday, May 24, shares ran higher by nearly 10% over the next five trading sessions. While traders may have "sold the news," long-term investors surely were pleased.

Ford said sales in May were up 14% from a year before. Although rival General Motors (GM) did see a 40% jump in its Cadillac sales, GM was able to increase total U.S. sales by only 3.1% when compared to last year.

Nissan (NSANY) was the biggest winner, with a jump of 24%, while Toyota (TM) and Honda (HMC) both posted positive figures: 2.5% and 4.5%, respectively.

So what is all of this saying? Consumers are spending, and they are confident that they will continue get paid. They seem optimistic about their personal finances, their investments (with the S&P 500 up roughly 15% year to date) and their job security. But there's one shining light that may provide the hidden answer to the boost in auto sales: pickup trucks.

On May 2, it was announced that Ford would be adding a third shift to one of its assembly lines for the F-Series truck. This is great news for Ford, because the F-Series has been the top-selling vehicle in the country for 31 consecutive years.

The auto giant didn't disappoint investors when it was announced that it sold more than 71,000 of the trucks for the month of May. This represents a 30% jump in year-over-year sales and brings the year-to-date total to nearly 300,000 units, which by itself represents a 22% jump compared to last year's YTD sales figures.

In 2012, many thought that auto sales were surprisingly strong. So with strong sales last year and even stronger sales this year, why aren't shares of Ford and other automakers trading much higher?
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.62 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs