Long, long ago, way back in the latter days of the 1950s, legacy automaker Ford (F) rolled out a car known as the Ranchero. Dubbed a “coupe utility” that looked like the misbegotten offspring of a station wagon and a pickup, the Ranchero was a fixture on car lots until the end of the 1970s. And now, it may be making a comeback in a completely different form. The news left investors less than enthusiastic, and shares slipped fractionally in Thursday afternoon’s trading.
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.
Based on a new patent Ford filed about two days ago, the next electric pickup from Ford could bring back the Ranchero name. Details about the patent are still thin on the ground, but reports note that the patent deals with “…motor vehicles, specifically trucks, vans, utility vehicles, and electric cars.”
With Ford’s “Model T Moment” still set to arrive early next week, this patent takes on a little extra life. Sure, that patent could be unrelated, but that the patent was taken out six days before the big electric car event makes for a really strong coincidence. Previously, some believed that this new reveal would be for the Ford Ranger, rather than the newly-revived Ford Ranchero. This would also not be the first time Ford has brought back old names, either; the Puma, the Explorer, and the Capri all have electric versions in Europe, at least report.
Envisioning the Future
So while we may have one piece of the Model T Moment puzzle in hand—though admittedly, this could ultimately fail to materialize—we are left with room to speculate ahead of the upcoming event. One thing that some are looking for is oddly simple: value.
Inflation worries have been hitting households for years. The dollar could be in better shape as well. And the car market has been out of control price-wise for years. A value-priced electric vehicle platform would absolutely be welcome right now. After all, that original Model T ran about $600, which adjusted into today’s money is around $11,700. When, outside of a used car lot, have you seen a car sell for $11,700?
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, 10 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 10.66% rally in its share price over the past year, the average F price target of $10.39 per share implies 7.36% downside risk.
