NEW YORK (TheStreet) -- Shares of Ford Motor Co. (F) - Get Report rose 1.3% to $14 in afternoon trading Tuesday after J.D. Power & Associates and LMC Automotive forecast Monday that U.S. new vehicle sales in October would increase 6% year-over-year to 1.27 million.
The increase compared to one year ago would mark the highest level of new vehicle sales for October since 2004 and would represent an annualized selling rate of 16.3 million vehicles.
Several major automotive companies report October vehicle sales on November 3.
Auto sales have steadily risen since they hit a 27-year low of 10.2 million vehicles in 2009. Sales reached 15.6 million in 2013.
Separately, TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- FORD MOTOR CO's earnings per share declined by 32.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FORD MOTOR CO increased its bottom line by earning $1.75 versus $1.42 in the prior year. For the next year, the market is expecting a contraction of 36.6% in earnings ($1.11 versus $1.75).
- The share price of FORD MOTOR CO has not done very well: it is down 22.41% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 34.4% when compared to the same quarter one year ago, falling from $1,272.00 million to $835.00 million.
- You can view the full analysis from the report here: F Ratings Report