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Will Ford Stock Continue to Rise after Its Q1 Report?

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Ford’s first-quarter earnings

Ford Motor Company (F) released its first-quarter earnings report on April 25 after the market closed. In the first quarter, the company posted positive growth YoY (year-over-year) in its adjusted earnings. Ford managed to beat analysts’ consensus estimates by a wide margin. Ford reported an adjusted EPS of $0.44 in the first quarter—up ~2.3% YoY.

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Trucks and SUVs helped Ford

The strength in Ford’s pickup truck and SUV sales drove the company’s first-quarter earnings.

Although Ford’s F-Series sales in the US remained nearly flat in the first quarter with a minor rise of 0.2% YoY, the retail average transaction price of its F-Series trucks remained solid near $47,000 in the first quarter.

Ford plans to strengthen its truck and SUV segment with a new range of vehicles. The company expects its new trucks and SUVs including the Ranger, Super Duty, Explorer, and Escape to attract high demand and help Ford boost its profitability in fiscal 2019.

Could Ford stock continue to rise?

Ford stock has underperformed the broader market and General Motors (GM) from 2013 to 2018. In 2018, Ford stock fell 30.1%, while the S&P 500 benchmark and General Motors fell 6.2% and 18.4%, respectively.

So far in 2019, Ford has outperformed the S&P 500 Index and General Motors. As of April 25, Ford has risen 22.9% compared to 16.7% and 16.9% gains seen in the S&P 500 Index and General Motors, respectively.

While Ford’s first-quarter results should keep investors’ optimism high in the next few months, it’s important for the company to sustain a positive trend in its profitability and earnings in the coming quarters. Any signs of weakness in Ford’s truck and SUV sales in the coming months could turn its stock negative again.

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