Ford (F) Stock Gains After Reporting November Vehicles Sales

NEW YORK (TheStreet) -- Shares of Ford (F) were gaining 0.9% to $15.92 Tuesday after the auto maker reported vehicle sales for the month of November.

Ford said that vehicles sales fell 1.8% year over year to 187,000 vehicles sold in November, compared to analysts' estimates of a 2% drop in sales in the month. The company said that it anticipated the drop in sales for the month as it prepared for the launch of the aluminum 2015 F-150 truck.

Watch the video below for an overall look at U.S. auto sales for November:

Sales of Lincoln brand vehicles grew 20.6% year over year to 8,113 in the month, while sales of Ford branded vehicles fell 2.6% to 178,887 in November.

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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 good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has increased to $5,369.00 million or 39.81% when compared to the same quarter last year. In addition, FORD MOTOR CO has also vastly surpassed the industry average cash flow growth rate of -37.61%.
  • Despite the weak revenue results, F has outperformed against the industry average of 18.0%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • 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 36.0% in earnings ($1.12 versus $1.75).
  • The share price of FORD MOTOR CO has not done very well: it is down 7.47% 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.
  • You can view the full analysis from the report here: F Ratings Report

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