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Ford's Stock at a Hold Amid Market Concerns and Bearish Momentum

StockInvest.us, 3 weeks ago

Ford Fundamental Analysis

Ford Motor Company (F), a major player in the global automotive industry, recently closed at $10.31 on November 06, 2023, experiencing a -2.37% change on that day, pushing the stock price just above the year's low of $9.63. With a current market capitalisation of nearly $40.54 billion, Ford maintains a volume of around 48.26 million shares, which is slightly below its average volume.

Ford's current EPS stands at $1.53 and it has a PE ratio of 6.74. As a rule, a low P/E ratio can indicate that a stock is undervalued, unless there are underlying issues with the company. Ford's relatively low P/E ratio, in light of some recent news, could suggest that the market has some concerns about the company's near-term prospects.

Amongst analysts, Ford enjoys a consensus buy rating, albeit with a few counsels for "hold" and "sell". The target consensus price is set at $18.50, and though the target high is optimistically placed at $30, the target low sits much closer to Ford's current price, at $10.

News involving the future of Ford specifically mentions lowered price targets from Evercore ISI - citing a target price decrease from $11 to $10 -, slower sales of electric vehicles, large pension sales of the stock, and potential challenges for the firm in the manufacturing sector.

Technical Analysis

Taking into account the technical indicators, Ford's price is presently below both the 50 Day Moving Average of $11.85 and the 200 Day Moving Average of $12.57. It is usually a bearish signal when a stock is trending below these important averages. The MACD, a trend indicator, is -0.515506 indicating a bearish momentum as well.

Ford The RSI14 is at 28, which suggests that Ford's stock is oversold. This condition often comes ahead of a reversal (upswing), but is not a guarantee, especially combined with the company's recent bearish momentum.

The ATR, a measure of stock volatility, stands at 3.62. Low values generally indicate stagnant price levels and potentially little interest from traders and investors. High values, conversely, mean high interest or uncertainty. The current support level is $9.96, only slightly below the current price, and the resistance level is much higher at $11.96.

Earnings and Future Prediction

Ford's earning announcement is scheduled for 01/31/2024. Given the current sliding price and stiff resistance level, investors may be cautious unless forward guidance from the company significantly counters the existing market sentiment.

Based on the technical indicators and surrounding news, it seems plausible that Ford's stock may further decrease and touch the support level within the next trading day or might bounce back due to its oversold condition. Looking at the upcoming week, barring unforeseen bullish sentiment, the stock might continue to trade at the lower end of its spectrum due to its gloomy forecast from Evercore ISI as well as slowing EV sales.

Final Evaluation

Based primarily on the technical indicators hinting at significant bearish momentum, apparent market concerns, the lowered price targets and the waning sales in the EV sector, Ford's stock is currently a Hold. It's necessary to keep an eye on any changes in the EPS and the forthcoming earnings announcement. Any positive trend reversal signals from the technicals must also be noted before considering a firm stance to buy.

Check full Ford forecast and analysis here.