The stock will definitely be a part of Real Money’s Stephen “Sarge” Guilfoyle’s future. The company’s shares have performed well under the leadership of CEO Jim Farley, who came on board in October 2020. Farley is a veteran car executive who cut his teeth at the Lexus division of Toyota Motor (TM) - Get Toyota Motor Corp. Sponsored ADR Report previously and also serves on the board of Harley-Davidson (HOG) - Get Harley-Davidson, Inc. (HOG) Report (.) - Get Harley-Davidson, Inc. (HOG) Report
Since Farley took the helm, the stock has seen “measured gains followed by basing periods of consolidation,” Guilfoyle wrote in a recent Real Money Pro column. “It's almost as methodical as a step ladder,” he wrote. “Any more of this and Farley may be added to Sarge's Mount Rushmore of CEOs.”
The stock is “just getting started” based on technical indicators such as the FSO (Full Stochastics Oscillator) and RSI (Relative Strength Index) that are “coming in a bit hot, but the daily moving average convergence divergence (MACD) is nowhere near ready to rest,” Guilfoyle wrote.
He is long on Ford and the stock is currently his sixth-largest allocation and 11th-best performer.
“I expect to be in the name for the foreseeable future,” he wrote.
Ford, the Detroit-based manufacturer, plans to spend billions of dollars to build new plants and plans to finance them all from profits. The company announced a partnership with South Korea's SK Innovation to invest a combined $11.4 billion (Ford's commitment adds up to $7 billion) to build two massive plants in Stanton, Tennessee, and one in Glendale, Kentucky, along with a third smaller site in Kentucky to construct electric trucks and batteries.