Legacy automaker Ford (F) recently joined a coalition of other automakers who found themselves in the same boat. Most automakers were hit hard by the fire at Novelis, which cost Ford a hefty chunk of its aluminum supply. Ford had to turn elsewhere for months to get the aluminum it needed, and so, wants the government to offer some relief for tariffs connected to the “turn elsewhere for months” plan. The government is not budging, but investors are pleased, and sent Ford shares surging up over 5% in Wednesday afternoon’s trading.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
It was not that Ford wanted to go to other countries for aluminum, it pointed out, but rather that the fires at the primary plant for aluminum rendered it unavailable for several months. So Ford, along with several other carmakers, wants relief from their alternative sourcing plans, at least until Novelis can get back up and running at full capacity, rendering the need for other sources moot once more. Novelis hopes to get back up and running in June.
Reports suggest that the government is not budging on this point, noting that the car companies already got some relief from tariffs with the 25% import duty on auto parts. Moreover, reports note, the issue does not seem particularly pronounced, with one White House official noting, “…they have not requested tariff relief on this matter in a particularly pronounced way.”
Ranger Resale Values Holding Up
Meanwhile, those who bought a Ford Ranger and are considering reselling it are feeling pretty good about a new report out. Word from the iSeeCars Top 25 Cars that Hold Their Value Best list puts the Ford Ranger at number 22. It has an average five-year depreciation rate of 30.2%. This makes it third-best among all pickups as well, and given that pickups are a big part of car sales right now, makes it particularly attractive.
Executive analyst with iSeeCars Karl Brauer noted, “We’re not back to pandemic levels, but with used cars retaining more value in every major vehicle segment, there’s clearly been a shift in overall used car value. Likely factors include ongoing new car price hikes and drops in consumer confidence, both of which are driving more used car demand.”
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 21.26% rally in its share price over the past year, the average F price target of $13.88 per share implies 13.91% upside potential.
