NEW YORK (TheStreet) -- Ford Motor Co. (F) - Get Ford Motor Company Report stock closed down by 0.34% to $14.55 on Monday afternoon after the carmaker issued a safety recall for certain 2010 and 2011 Ford Fusion and Mercury Milan vehicles in the U.S., Canada and Mexico.
About 451,865 vehicles may have a faulty purge valve that allows the fuel tank's internal pressure to alter, which could cause a leak.
No incidents related to the issue have been reported.
Ford stock was trading higher this morning after the United Auto Workers union ratified a four-year contract with the automaker on Friday.
The agreement passed with 51.4% of workers voting in favor. The contract includes about $9 billion in new investments to secure or create 8,500 jobs in the U.S.
"Our UAW members have ratified the national agreement after a long process and much debate," UAW President Dennis Williams said in a statement.
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 increase in net income, revenue growth, 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 lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. 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.
- Net operating cash flow has increased to $6,455.00 million or 20.22% when compared to the same quarter last year. In addition, FORD MOTOR CO has also modestly surpassed the industry average cash flow growth rate of 12.35%.
- 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).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Automobiles industry and the overall market, FORD MOTOR CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full analysis from the report here: F
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.