Is a Ford Stock Turnaround on the Horizon?

Core Insights - Ford Motor Co. is the second largest automaker in the U.S., experiencing a recovery in inventory due to easing supply chain issues, but its stock has underperformed, down 16% [1] - The company is committed to its electric vehicle (EV) strategy despite projected annual losses of $1.5 billion in this segment [2][3] - Ford's Q3 2024 results showed an EPS of 49 cents, beating estimates, with revenues up 5.5$46.2 billion, driven by new truck and SUV launches [4] Financial Performance - Ford Pro's commercial motor and EV vehicle revenues rose 13% YoY to $15.7 billion, with EBIT of$1.8 billion and a margin of 11.6% [5] - The Model E segment reported an EBIT loss of $1.2 billion, with cost improvements of$500 million offset by pricing pressures [6] - For 2024, Ford expects adjusted EBIT of $10 billion, with a projected loss of about$5 billion from the Model E segment [7] Market Position and Strategy - Ford's North American volume grew 8% YoY, increasing its U.S. market share by 40 basis points to 12.6% [4] - The company anticipates launching approximately 150 new EV nameplates in North America by the end of 2026 [3] - Ford's stock has an average price target of $11.83, indicating a potential upside of 22.5% [11]