To say that the car industry right now is in something of a state of flux might be understatement to an almost frightening degree. And legacy automaker Ford (F) is trying desperately to figure out what that future will look like, and what its place is therein. But investors seem enthusiastic about the fact that Ford is trying to answer tomorrow’s questions today, and gave Ford stock a modest boost in Tuesday afternoon’s trading.
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The first major point Ford is left to consider is the changing market landscape overall. Currently, Ford is third in United States market share at 13%, with General Motors (GM) landing 17%. Japanese and Korean car makers are actually the remainder of the top five. And while Ford has managed to dodge a lot of tariff impact by doing most of its production within the United States, there are still issues here, particularly on raw materials.
That led CEO Jim Farley to predict that tariffs would mean long-term change for the entire car industry. Farley noted, “We increasingly see Europe, North America, and Asia becoming kind of regional businesses with trade tariff rates that are aligned for those three or four regions. And I believe that is a very long-term change.” And while Farley expects the tariffs to continue in the long-term, he does not believe the tariffs are actually large enough to force any big changes in manufacturing processes.
What Anniversary is the 60th Again
While the 50th anniversary is the golden anniversary, the 60th is diamond. That was not always the case—the 75th was diamond for a while, and still is in some cases—but for Ford, the 60th anniversary of the Bronco will be special no matter how it is celebrated. To that end, Ford is rolling out a special 60th anniversary edition of the Bronco.
This version will only be available for Broncos with the Sasquatch package. But those who go whole hog on the 60th anniversary edition of the Bronco will get 35-inch Goodyear (GT) rugged terrain tires, as well as 17-inch alloy wheels in Gravity Gray finish. A special center cap will also be available, featuring a Bucking Bronco logo and the year, 1966, on the outer ring. Buyers will even be able to get their anniversary Bronco in the Wimbledon White paint scheme.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 11 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 11.96% rally in its share price over the past year, the average F price target of $10.30 per share implies 7.07% downside risk.
