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Ford Motor Company Shows Bearish Momentum with Potential for Upside in the Future

StockInvest.us, 3 weeks ago

Ford Technical Analysis

Ford Motor Company (F), listed on NYSE, closed at $10.17 per share on November 7, 2023, indicating a decline of $0.14 (-1.36%) from the previous trading session. While the intraday fluctuation ranged from a low of $10.05 to a high of $10.29, the stock has demonstrated a 52-week range of $9.63 to $15.42.

The stock is currently trading below both the 50-Day Moving Average ($11.82) and the 200-Day Moving Average ($12.56), which is indicative of a bearish momentum in the short and intermediate term. The MACD value of -0.57 also suggests negative sentiment among traders.

The RSI14 stands at 29, which falls in the oversold territory, potentially suggesting a future upward price correction. This indication is also supported by the high Average True Range (ATR) of 3.59, signaling increased volatility and suggesting that the stock could face significant price changes in the near term.

The identified support line at $9.96 is currently holding, with the resistance line placed at $11.96.

Fundamental Analysis

Ford Looking at the financial health, Ford has a market capitalization of $39.99 billion. The company currently has a relatively low Price-to-Earnings (PE) ratio of 6.65 and an Earnings per Share (EPS) of $1.53, making it potentially undervalued compared to its earnings.

The average volume of the company is around 50.96 million shares with an outstanding share count of 3.93 billion. The discounted cash flow (DCF) analysis, a fundamental valuation method, suggests an intrinsic value of $16.43 per share, indicating a significant undervaluation at current trading levels.

Analysts have a median target price of $17, ranging from a low of $10 to a high of $30, with a consensus rating of "Buy", suggesting a potential upside for the stock.

Company News & Final Evaluation

Despite Ford's rocky relationship with dealers regarding the EV transition, labor agreements between the UAW and Detroit's Big 3 automakers, including Ford, are seen as a positive development. Analysts also continue to set targets for Ford stock, even after bear gaps have been observed.

However, market uncertainties tied to weaker-than-expected forecasts from key automotive industry players, like chipmaker Lattice, make the outlook for automakers slightly precarious.

Combining the technical and fundamental analysis with recent company news, a Hold stance seems appropriate for Ford stock in the short term until more positive indicators appear. Once Ford overcomes transitional challenges in EV production and chip shortages, the stock's undervaluation, combined with buyer sentiment, could lead to a Buy recommendation.

Check full Ford forecast and analysis here.