Why Ford Stock Is Outperforming Its Peers in March

Ford stock

In February 2018, Ford Motor (F) stock fell 3.3%, and General Motors (GM) fell 7.2%. As of March 5, 2018, Ford stock has been mixed, falling 0.3%. That’s better than its peers. GM, Fiat Chrysler (FCAU), and Toyota (TM) have fallen 4.1%, 4.5%, and 2.7%, respectively, as of March 5.

In January 2018, Ford stock underperformed its peers and fell 11.2% after reporting mixed 4Q17 results with a dismal 2018 outlook.

Why Ford Stock Is Outperforming Its Peers in March

Strength in F-Series US sales

In February 2018, Ford’s home market sales declined 6.9% YoY (year-over-year). February was the second consecutive month that Ford reported a YoY weakness in its home market sales amid industry softness. Its fleet sales fell 3.8% in February, and its retail sales declined 8.5% YoY.

There was a sharp decrease of 12.3% YoY in February for Ford’s SUV (sports utility vehicle) sales. But the company reported a solid increase of 3.5% in its F-Series truck sales, which drove its overall US truck sales higher by 1.2% YoY.

February was the tenth consecutive month that Ford’s F-Series sales have grown in the US market. Stronger F-Series sales could have a positive impact on the company’s 1Q18 profitability since trucks tend to yield higher profit margins for automakers than small cars.

Recent earnings

In 4Q17, Ford’s adjusted EPS (earnings per share) was $0.39, which was 30% higher than $0.30 in 4Q16. The company also reported a 7% YoY rise in its fourth-quarter revenues.

In the next part, we’ll see how Fiat Chrysler stock traded in February.