Ford

F

Market cap $52.9B

Ford has shown strong fundamentals with five consecutive double-beat quarters and a 31% YTD stock gain, outperforming benchmarks. F trades at a 27% discount to peers on a 12x forward P/E and offers a 5.85% dividend yield but faces heavy leverage and no recent dividend growth. Despite recent momentum, F's valuation is at a multi-year high, suggesting limited near-term upside and potential for profit-taking or consolidation.

Ford Pro is overlooked by too many investors as a core part of Ford's bottom line. It continues to expand its high-margin paid software subscription business.

Given the Novelis fire and the consequently impacted adj EBIT/FCF generation, Ford is unlikely to pay out supplementary dividends in FQ4'25 based on the current dividend policy. With F nearing its 52 week heights after the immense +52% rally from the 52 week lows, it is apparent that the stock continues to enjoy robust bullish support. The management may also take this chance to "pulling the plug on F-150 Lightning," which may drive an improved adj EBIT performance from FY2026 onwards.

CEO Jim Farley's bet on electric vehicles makes sense. Ford stock may look cheap, but it is risky.

Ford reported strong results for Q3, momentum that supports the bull case. Investors can't ignore the low profit margins and cyclical nature of vehicle demand.

Even if sales are growing again, Ford faces undeniable profitability challenges. Ford's big move deeper into the electric vehicle space may or may not pay off.

Ford Motor on Friday stood by its annual EBIT guidance of $6 billion to $6.5 billion for this year following another fire this week at aluminum supplier Novelis' New York plant.

Recently, Zacks.com users have been paying close attention to Ford Motor (F). This makes it worthwhile to examine what the stock has in store.

The Novelis plant in New York had aimed to resume production in December.

Another fire has broken out at the Novelis aluminum plant in Oswego, NY that supplies sheet metal for Ford's trucks, including its all-electric F-150 Lightning.