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With Ford Stock Near Its 52-Week Low, What’s Next?

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Ford stock last week

Last week (ended April 15), Ford Motor (F) stock fell 1.1% to close at $11.11, drawing closer to its 52-weeks low level of $11.07. Notably, Ford has been underperforming the broader market and its peers for the past three quarters. In 1Q17, Ford’s stock fell 4.0%.

During the same period, the stocks (XLY) of General Motors (GM), Fiat Chrysler Automobiles (FCAU) and Tesla (TSLA) have risen 1.5%, 19.8%, and 30.2%, respectively.

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Recent developments

On April 3, Ford reported a 7.2% YoY (year-over-year) decline in its March US sales—much worse than the industry average. The company’s first quarter US sales were 4.4% lower on YoY basis, as compared to a ~1.5% YoY decline in US auto industry sales in 1Q17.

While the company’s truck sales rose 2.5% YoY in March, its SUV (sports-utility-vehicle) sales fell 3.4% YoY in March. No major improvement in Ford’s 1Q17 margin can be expected, as heavyweight vehicles and utility vehicles yield higher margins for automakers.

Ford’s lower March SUV sales could hurt its 1Q17 profit margins. These sales were also lower than investor expectations from the company’s upcoming earnings, which could be the biggest thing hurting its stock these days.

What’s next?

Ford is expected to release its 1Q17 earnings on April 27, 2017. Its stock could witness mixed movement as investors await the first quarter results. The immediate support lies near the stock’s 52-week low of $11.07, and any breach of this level could trigger a sell-off toward the next key support of $10.60.

Continue to the next part for a closer look at Fiat Chrysler last week.

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