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How Analysts Rate Ford Stock before Its 4Q17 Earnings Event

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Jan. 24 2018, Updated 7:36 a.m. ET

Analysts on Ford stock

According to the data compiled by Reuters on January 19, about 17% of analysts covering Ford Motor Company (F) stock gave it “buy” recommendations. Another 75% recommended a “hold,” and the remaining 8% recommended a “sell.”

These stock recommendations were based on the consensus of 24 analysts covering Ford. About three months ago, 25% of these analysts recommended a “buy” on Ford stock.

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Upside potential

On January 19, 2018, Ford’s consensus 12-month target price was $12.63. This target price reflected a 5.2% upside potential from its market price of $12.00.

Ford stock turned positive in September 2017 as it delivered its highest monthly returns in the last 22 months of ~8.5%. In 4Q17, the stock rose 4.3%. In comparison, this was lower than the 6.1% rise in the S&P 500 Index (SPY)(SPX-INDEX)(QQQ).

Key earnings trend

In 3Q17, Ford reported an improvement in its profitability. However, its global vehicle sales weakened on a year-over-year basis, which could be the primary reason why fewer analysts are bullish on Ford stock.

In a strategic update session in October 2017, Ford’s CEO, Jim Hackett, highlighted the company’s main focus areas as personal mobility, electric vehicles, and autonomous vehicles.

In 4Q17, Ford’s US sales were positive despite industrywide weak sales. The company is set to release its 4Q17 earnings on January 24. Please read What Analysts Are Estimating for Ford’s 4Q17 Earnings to learn more.

Auto companies (IYK) such as Ford, Toyota (TM), General Motors (GM), and Fiat Chrysler (FCAU) derive a large portion of their sales from the US market.

In the next part, we’ll look at analysts’ recommendations for Tesla (TSLA) in January 2018.

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