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Ford Stock Prices Increase by 1.53% Despite Potential Strike: Stock Summary

StockInvest.us, 2 months ago

Ford Stock Summary

Ford Motor Company (NYSE:F) closed at $12.64 on September 13, 2023. There was a change of $0.19 which means that the stock prices increased by 1.53%. The day's trading saw a low of $12.63 and a high of $12.91. The volume of shares traded on the day was 61.79 million, which was higher than the average volume of 51.17 million. Ford's market capitalization stands at approximately 49.69 billion.

Technical Analysis

The Relative Strength Index (RSI14) of Ford stands at 70. This indicates that the stock is currently in the overbought territory. This could signal a potential pullback or at least a slowdown in the upward movement. However, this isn’t a standalone negative indicator. Looking at moving averages, the 50-day moving average stands at $13.12 while the 200-day moving average is at $12.74. Since the current stock price of $12.64 is below both the 50 and 200-day moving averages, it can be seen as a bearish signal. The MACD (Moving Average Convergence Divergence), another important technical indicator, is negative at -0.22 which could also represent bearish sentiment for Ford's stock.

Fundamental Analysis

The Earnings per share (EPS) is $1.03 and the Price to Earnings ratio (PE) stands at 12.27, suggesting that the stock is fairly valued. The discounted cash flow (DCF) for Ford is $18.90 which suggests that the stock might be undervalued at the current price. Ford's consensus rating is a 'Buy', counting 13 analysts as 'Buy', 7 as 'Hold' and 2 advocating 'Sell'. The high target is $30, low is $10 with a consensus of $18.87 and a median target of $17 which indicates that analysts forecast potential upside for the stock.

Ford Company News and Impact

Recent news indicates that Ford is on the brink of a strike called by the United Auto Workers (UAW). If the proposed strike goes ahead, it could impact Ford's production plans and ultimately harm the bottom line. Although Ford has reportedly offered a 20% increase over the four-year deal, the possibility of the strike still persists. On the flip side, Ford has received positive coverage from UBS, which initiated coverage on US automakers with a 'buy' rating for Ford. This shows that Ford is getting increased attention in the investment world.

Prediction for Next Trading Day and Upcoming Week

Given the strong fundamental value of the company, the current technical analysis, recent news stories, and the potential strike, the stock is expected to have some volatility in the near term. The price on September 14, 2023, could be influenced by any developments and news. If the strike is averted or there's good news regarding the negotiations, the stock price could increase. However, if the strike proceeds or if the negotiations worsen, it could put downward pressure on the stock.

During the upcoming week, as the situation with the strike clears up and based on the fundamental analysis, the stock price could trend towards the DCF and analysts' target which represents upward potential.

Final Evaluation

Considering the favorable DCF valuation, 'Buy' rating consensus of analysts, and the potential disruption due to the upcoming strike, the stock is a 'Hold'. This recommendation acknowledges Ford's solid fundamentals but also respects the uncertainty caused by the possible workforce disruption. Investors should keep a close watch on the developments about the upcoming strike and reevaluate based on how that situation evolves.

Check full Ford forecast and analysis here.