NEW YORK (TheStreet) -- Ford Motor Co. (F) - Get Report stock is gaining by 0.56% to $14.28 in pre-market trading on Wednesday as the car company is in talks with Google (GOOGL) about jointly developing self-driving car technology.
The partnership remains under discussion, but it could include building and developing autonomous cars together, Reuters reported.
Google would benefit from the industrial and automotive knowledge of the U.S.'s second-largest carmaker, while Ford would have access to Google's extensive software development, Reuters noted.
Ford CEO Mark Fields met with Google co-founder Sergey Brin in California earlier in December to discuss the status of the talks, Reuters reported.
Ford declined to confirm or deny talks with Google to Reuters.
"We have been, and will continue working with many companies and discussing a variety of subjects," a Ford spokesman told Reuters.
Additionally, Ford recalled 313,000 older vehicles yesterday because the headlights can turn off and cause an accident, the Associated Press reported.
Separately, recently, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FORD MOTOR CO as a Buy with a ratings score of B. This is driven by a few notable 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 generally high debt management risk by most measures that we evaluated.
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 12.14%.
- 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