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F Stock to Register Best Performing Week Since June 2020 on Better Ford Earnings Expectations

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by Bhushan Akolkar · 3 min read
F Stock to Register Best Performing Week Since June 2020 on Better Ford Earnings Expectations
Photo: Ford

Ford’s recent restructuring plan and electric vehicle push have brought new optimism among the investors. Besides, analysts are hopeful for a positive Q4 2020 earnings report which has pushed F stock to rally this week.

On Thursday, January 21, Ford Motor Company (NYSE: F) stock registered its third-consecutive day of surge to a new 52-week high ahead of its earnings call. This has put the stock to register its best weekly performance since June 2020. From under $10 on Monday, F stock has surged all the way above $11.53 as on Thursday closing. This is a massive 17% surge so far this week with today’s session yet to begin. On Thursday, F stock price surged as high as $12.15 registering an 11.9% intraday increase.

The recent price surge for the automobile giant comes amid a positive outlook from Barclays and Deutsche Bank. Ford is all set to disclose its product plans and fourth-quarter earnings report on February 4. There’s an overall optimism around the company’s guidance for 2021.

On Wednesday, Deutsche Bank has given a short-term buy call for Ford shares. The bank is positive on Ford’s upcoming Q4 2020 earnings report. Thus, it also maintains its long-term hold rating for the stock. In an investor note, Deutsche Bank analyst Emmanuel Rosner writes:

“We see potential catalysts occurring in the coming months, including a solid 2021 outlook on its 4Q earnings call (2/4), the launch of a number of key models under its new executive leadership team, and Capital Markets Day in the spring where Ford could reboot its redesign program and present a new EV strategy”.

Barclays Positive on Ford Restructuring and Earnings

Last week, Ford announced that it will be shutting down three of its plants in South America as part of its $11 billion ongoing restructurings. Investors and market analysts have appreciated this decision by the company. Even Barclays has given a positive nod for this development.

However, Barclays is having a close watch on Ford’s efforts and development in the electric vehicle industry. Ford has said that it plans to invest around $11.5 billion in electric vehicle projects including all-electric as well as plug-in hybrid models. Last month, Ford unveiled its all-electric Mustang Mach-E. This move has already impressed analysts and investors.

While Ford makes a move in the electric vehicle industry it is bound to face tough competition from rivals like General Motors Company (NYSE: GM). GM is making a massive push in the electric-vehicle industry. The company is preparing an investment war-chest of $27 billion by 2025 for the EV push. Apart from only cars, GM is also working electric buses and flying pods. Besides, GM has recently entered a partnership with Microsoft Corporation (NASDAQ: MSFT) for building autonomous vehicles.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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