More Squawk From Jim Cramer: 'Just Not a Great Time for Ford (F)'

Ford (F) stock is tumbling this morning after reporting second-quarter results, and Jim Cramer notes that consumers currently aren't spending on vehicles.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Ford Motor (F) - Get Report are plunging 9.47% to $12.53 on heavy trading volume late Thursday morning after the automobile manufacturer reported a 2016 second-quarter earnings miss but revenue beat. 

"It's just not a great time for Ford," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

He recalled a past interview with Ford CEO Mark Fields in which Fields took a downbeat view about the massive recall related to faulty Takata airbags, lower auction values across the industry and disappointing CarMax (KMX) numbers, which he said affects residuals. 

"The auto business had been on fire around the world," Cramer stated. "That's been a major prop [for the markets]. I thought it was very sobering when [Fields] said CarMax was directly related to Ford and he meant it. And I think people kind of ignored his negativity there, but now they're not."

The U.S. consumer is spending on the house rather than on vehicles or apparel, Cramer added.

Earlier today Harley-Davidson (HOG) cut its full-year motorcycle shipment guidance given lower U.S. quarterly sales.

(Ford is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Ford's strengths such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: F

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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