Just recently, Ford (NYSE:F) released quarterly data showing that it was America’s best-selling vehicle brand. Plus, the iconic automaker is preparing to make inroads in Europe with an electrified commercial van. Yet, F stock remains oversold and underappreciated, so investors should hang on for the long haul and potentially a 2x share-price move.
Ford is an old company, but it’s also quite modern. The company offers a variety of popular internal combustion engine (ICE) vehicles and electric vehicles (EVs). Furthermore, Ford is planning a slimmed-down and highly focused vehicle lineup for 2024.
At the same time, the critics just don’t seem to understand the true value that Ford offers as an investable business. They’ll end up regretting their decision in a couple of years, when Ford shares are twice the price and still climbing higher.
F Stock Offers a Terrific Value Right Now
F stock traded at $25 at one point in 2022, and investors should expect the stock to revisit that level by 2025. Bear in mind, Ford’s non-GAAP trailing-12-month price-to-earnings (P/E) ratio indicates an irresistible value. It’s only 6.59x, versus the sector median P/E ratio of 11.33x.
Moreover, Ford has been consistently profitable and offers a generous forward annual dividend yield of 4.83%. Unless the U.S. economy enters into a multi-year bear market, Ford should reward buy-and-hold investors with outstanding returns over the next couple of years.
We’ll touch upon Ford’s domestic vehicle sales in a moment. Investors should remember, however, that Ford is an international business. For instance, the automaker recently introduced a new electric Courier commercial van in Europe. This could be a blockbuster seller in cities like Paris, France, where electrified delivery vehicles are gaining traction.
Ford Delivers Outstanding Vehicles Sales Growth
If you’re still not convinced that F stock deserves to double by 2025, check out Ford’s first-quarter 2023 vehicle sales data. Considering that Ford was the best-selling brand in America, the company’s shares should be priced much higher than they are now.
Here’s the lowdown. Ford sold 456,972 vehicles during the quarter, up 10.7% year over year. The company observed sales strength across a variety of iconic vehicle brands and types. These included the “F-Series, Bronco and Mustang, commercial vehicles and EVs.”
Truly, Ford is emerging as a winner of the vehicle-electrification movement in America. During 2023’s first quarter, Ford’s EV sales climbed 41%. And here’s a startling statistic. Believe it or not, “Sales by Ford Pro of the E-Transit, America’s best-selling electric van last year,” increased 62.7%.
So, if you’re looking for an EV manufacturer to invest in, you don’t have to wager on a risky startup business. Ford is giving other EV makers a run for their money with stellar sales figures in early 2023.
F Stock Is Destined to Double by 2025
Ford’s sales numbers are unassailable. The company is a strong seller of both ICE vehicles and EVs. However, investors have been hesitant to bid up the Ford share price.
That’s fine, as you now have a prime opportunity to own a low-cost stake in Ford. So, consider buying F stock today in anticipation of a 2x move by 2025. After that, the sky is the limit.
— David Moadel
320 hedge funds just sold this stock [sponsor]A strange force has seized control of Wall Street. Hedge funds are already moving their money… and preparing for even stranger days ahead. Over 320 hedge funds have quietly sold THIS famous stock - to prepare for a dramatic market shift. Get the strange truth from a 50-year Wall Street insider... including the name and ticker of the stock hedge funds are selling hand-over-first.
Source: Investor Place