Ford Motor Company’s stock
Last year, Ford stock (F) underperformed the broader market and its peers (XLY) including General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM). Deteriorating profitability and stagnation in its home market sales could be the key concerns for this underperformance. Now, let’s take a look at some key factors that led to the stock’s choppy movement last week.
Dull 2017 outlook
Last month, Ford released its dismal 4Q16 earnings report. Ford’s 4Q16 earnings weren’t a big surprise for Wall Street, and many analysts were already expecting the downward trend in the company’s margins to continue. In 2016, Ford highlighted the risks and challenges it might face in achieving its 2016 guidance.
During the 4Q16 earnings call, Ford’s management didn’t seem quite confident in the company’s fiscal 2017 financial outlook, as it again warned investors of potential risks. This concern could be the primary reason for the prevailing negative sentiment surrounding its stock.
Read Market Realist’s Ford’s 4Q16 Earnings: Another Disappointment? to learn more about its 2017 outlook.
Key technical levels
As of February 17, Ford stock is trading at $12.58. Earlier this month, the price bounced back from an immediate support near $12.20 but didn’t witness much activity last week.
Only a breach of this support could technically trigger a selloff in its stock toward the next key support near $11.85. On the upside, an immediate resistance lies near $12.70.
Continue to the next part where we’ll look at Fiat Chrysler’s movement last week and its key support and resistance levels for the week ahead.