Ford Motor Company
Ford Motor Company (NYSE: F) is an automobile company. The Company designs, manufactures, markets, and services a full line of electrified passenger and commercial vehicles, such as Ford trucks, utility vehicles, vans, and cars, and Lincoln luxury vehicles. The Company's segments include Ford Blue, Ford Model e, Ford Pro, Ford Next and Ford Credit.
Recent Financial and Business Updates:
- Ford Motors reported a notable 12% year-over-year increase in revenue, reaching USD 45 billion. Both net income, at USD 1.9 billion, and adjusted EBIT, at USD 3.8 billion, also experienced growth. The company's cash and liquidity remained robust, showcasing its financial strength.
- Ford Pro, aimed at commercial customers, contributed to a remarkable 22% revenue growth, with EBIT more than doubling to USD 2.4 billion, representing a 15% margin. Sales of software and repair services also saw an upswing. The Ford Blue gas and hybrid business witnessed higher wholesales and revenue, reporting USD 2.3 billion in EBIT. The all-new global Ranger pickup gained substantial popularity and proved to be profitable.
- Ford Model e revenue surged by 39%, demonstrating its scaling capabilities and competitive pricing, solidifying its leadership position ahead of the industry's next-generation EVs. Ford now anticipates reaching a run rate of 600,000 units in 2024.
- Due to its successful performance, Ford raised its full-year 2023 guidance for adjusted EBIT to between USD 11 billion and USD 12 billion, and for adjusted free cash flow to between USD 6.5 billion and USD 7 billion.
- In the second quarter, Ford maintained its position as America's top-selling brand, with net sales increasing over 11%, and it held this position for the first six months of 2023. The demand for Ford's fresh lineup of trucks, SUVs, and commercial vans contributed to a 12% revenue growth worldwide. Quarterly net income reached USD 1.9 billion, nearly three times higher than the previous year, with a 4% margin. Adjusted EBIT grew to USD 3.8 billion, accounting for 8.4% of revenue.
- Ford continued to exhibit strong cash flow from operations and adjusted free cash flow, amounting to USD 5.0 billion and USD 2.9 billion, respectively. The company's balance sheet remained robust, with nearly USD 30 billion of cash and over USD 47 billion of liquidity at the end of Q2, reflecting increases both sequentially and year-over-year.
Technical Observation (on the daily chart)
The price of F stock has shown a consistent downward trend since July 12, 2023, correcting around 15.04%, a correction of around 60% of the whole uptrend. Currently, the stock is around an important support zone of USD 12.00-USD 13.00, from where price has taken supports and resistances in the past, expectations of a short-term upward trend for the stock. The RSI (14 period) momentum indicator is near the oversold zone with a value of 34.15, with expectations of some consolidation or a further continuation of an uptrend. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Ford Motor Company (NYSE: F) at the current price of USD 13.12 as of August 02, 2023, 06:45 am PDT.
Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
How to Read the Charts?
The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
The reference date for all price data, currency, technical indicators, support, and resistance levels is August 02, 2023. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
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