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Samantha Owen
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HS Capital Bank Ford Motor Stock 'Too Cheap to Ignore' Heading Into Earnings
HSCB Private Banking and Asset Management Group

BriefingWire.com, 3/20/2019 - Ford Motor Company (F) reports earnings after the closing bell on Wednesday, Jan. 23, and according to Macrotrends, the stock has a P/E ratio of just 6.22 with a dividend yield of 6.99%. This makes the stock "too cheap to ignore."

At the end of 2018, Ford stock closed at $7.65. On the first day of the year, the stock traded as low as $7.48, which was a buying opportunity between the annual value level at $7.31 and the semiannual pivot at $7.56. The initial upside was the quarterly risky level at $8.77, which is now a pivot (or magnet) until the end of March.

The stock closed Friday, Jan. 18, at $8.58, up 12.2% so far in 2019 and up 15.8% since its Dec. 26 low of $7.41. The stock is also in bear market territory at 29.4% below its 2018 high of $12.15 on June 12.

Ford reports earnings after the close on Wednesday, and analysts expect the auto maker to post earnings per share of 30 cents. In recent quarters, there has been a decided trend toward pickup truck, crossover and SUV sales. This led Ford to decide to discontinue making sedans except for the iconic Mustang brand. The F-Series trucks, Ford Expedition and Lincoln Navigator are the preferred brands moving forward. The Lincoln Luxury brands should continue as a plus, as the $90,000 Navigator is outselling the $70,000 version. The company offers finance plans at favorable rates. A negative is higher commodities prices.

Ford made an 80-year anniversary of the Lincoln Continental with the old-time rear door feature — called suicide doors by car aficionados — that open the opposite way as standard doors. They are making only 80 of these at $110,000, and they were sold out in 48 hours.

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