TheStreet TV anchor Rhonda Schaffler provides more details on Barron's take on Ford in the video above.
NEW YORK (TheStreet) -- Ford Motor Co. (F - Get Report) shares are popping by 2.28% to $13.24 Monday, on expectations that the stock could go up at least 25% in the next year given expectations of strong auto sales in the U.S., according to Barron's.
Even though the stock has been weighed down by concerns about China's economic health and a fear of a downturn in the U.S. auto market, it appears that Ford along with General Motors (GM) are facing more positives than negatives in the near future.
For instance, their plants are running three shifts daily and producing 100% or more of listed capacity. "With flush coffers, reasonable debt levels, and cogent strategies, they're much better equipped to withstand a slump," Barron's noted.
Another positive is the company's dividend as it yields 4.6%. Right now, Barron's believes both automakers look cheap. Ford currently trades for 6.6 times projected 2016 earnings and 3.9 times expected cash flow.
(Ford is held in the Dividend Stock Advisior portfolio. See all of the holdings with a free trial.)