Ford Motor (F) is set to report its second-quarter earnings on July 30, after market close. The stock is up about 20% year-to-date, driven by strong hybrid vehicle sales, improving margins, and solid earnings momentum. Also, TipRanks’ AI stock analysis has assigned an Outperform rating on Ford stock with a price target of $13, reflecting a 15.25% upside potential.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For Q2, Wall Street projects EPS of $0.33, down 30% year-over-year. Also, revenue is expected to decline 4% to $45.79 billion. Analysts attribute the expected decline to weaker vehicle pricing, higher incentive spending, and continued losses in the EV segment. It is important to note that Ford has an impressive track record with earnings, having exceeded EPS estimates in seven out of the past nine consecutive quarters.
Top Analyst Sees More Upside for Ford Ahead of Q2 Print
Heading into the Q2 print, Bank of America Securities Top analyst, John Murphy, reiterated a Buy rating on the stock with a price target of $14 per share. The analyst highlighted the automaker’s strong sales performance and favorable product mix relative to General Motors (GM).
The 5-star analyst noted that Ford is better positioned heading into the quarter, thanks to robust North American sales—the strongest since Q2 2019—supported by its “From America, for America” initiative. He also pointed to a rich sales mix and a potential tailwind from foreign exchange movements.
That said, Bank of America acknowledges potential pressure from tariffs, but still thinks Ford is on track to beat Wall Street estimates.
Options Traders Anticipate a 6.12% Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 6.12% move in either direction.
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, 12 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. The average F price target of $10.14 per share implies 10.11% downside risk.
