Ford (F) Stock Revved Up, Looking to Expand SUV Portfolio

Ford (F) shares closed Tuesday's trading session up as the automaker seeks to expand its SUV portfolio.
By U-Jin Lee ,

NEW YORK (TheStreet) -- Ford Motor Co. (F) - Get Report  shares closed Tuesday's trading session up 0.78% to $14.15 as the automaker is seeking to expand its SUV portfolio. 

Analysts are predicting Ford to build a new SUV and a new pickup truck at a factory in Wayne, MI. 

Additionally, the company today announced a new smartphone app that allows drivers to unlock and lock doors or start engines remotely. 

The new build in cellular-connected telematics system named SYNC Connect will be rolled out in the spring of 2016 with the new Ford Escape SUV. 

"The compact SUV segment is the largest and most competitive in the U.S., and the new Escape delivers even more of what our customers want - more technology they can really use to make their daily drive safer and easier," stated Joe Hinrichs, Ford president, The Americas. 

Separately, TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate FORD MOTOR CO (F) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 128.6% when compared to the same quarter one year prior, rising from $835.00 million to $1,909.00 million.
  • Net operating cash flow has increased to $6,455.00 million or 20.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.20%.
  • FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORD MOTOR CO reported lower earnings of $0.78 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $0.78).
  • After a year of stock price fluctuations, the net result is that F's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • You can view the full analysis from the report here: F
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