Ford (F) Still a "Buy," Says TheStreet

Tickers in this article: F

NEW YORK (TheStreet) -- Ford F has been reiterated as a "buy" with a ratings score of B, according to TheStreet Ratings team.

By midafternoon Friday, shares had slipped 0.56% to $15.19. Trading volume of 19.7 million was around half its three-month daily average of 45.4 million. 

Year to date, the stock has taken off 1.6%.

TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate FORD MOTOR CO (F) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • F's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FORD MOTOR CO increased its bottom line by earning $1.75 versus $1.42 in the prior year. For the next year, the market is expecting a contraction of 20.9% in earnings ($1.39 versus $1.75).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Automobiles industry average, but is greater than that of the S&P 500. The net income increased by 90.2% when compared to the same quarter one year prior, rising from $1,598.00 million to $3,039.00 million.