Home Stock Is it too late to buy Ford stock as shares spike after Q3 results?

Is it too late to buy Ford stock as shares spike after Q3 results?


On Thursday, Ford Motor Co (NYSE:F) shares spiked more than 8% after reporting its fiscal third-quarter results. The company announced its most recent quarterly results Wednesday after markets closed, surpassing the consensus for Street expectations. The automaker also reinstated its quarterly dividend of $0.10 per share, implying a forward yield of about 2.38%.

The company posted FQ3 non-GAAP earnings per share of $0.51, smashing the average analyst estimate of $0.27. In addition, Ford’s GAAP EPS of $0.45 was significantly higher than the Street forecast of $0.21, while revenue for the quarter of $33.2 billion, exceeded expectations by $410 million, despite declining by 4.3% from the same quarter a year ago.

Ford looks exciting

From an investment perspective, Ford shares trade at a compelling forward P/E ratio of 9.04, making the stock an attractive option for value investors. 

In addition, analysts forecast an EPS growth of about 290% this year, before rising at an average annual rate of 79.11%.

Therefore, long-term investors could also be persuaded to invest in Ford shares ahead of its exciting growth story.

The stock has gained more than 97% this year and about 118% over the last 12 months.

Source – TradingView

Technically, Ford shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has rallied to overbought conditions, creating an opportunity for a pullback.

However, with shares yet to retest the trendline resistance, the current bull run could continue for the foreseeable future.

Therefore, investors could target extended gains at about $18.06, or higher at $19.13, while $15.50 and $14.36 are crucial support zones.

Ford could be a multi-bagger

In summary, although Ford shares seem to have rallied closer to the overbought conditions of the 14-day RSI, the stock could extend gains towards the trendline resistance.

Therefore, given the company’s exciting growth prospects and compelling valuation, Ford could turn into a multi-bagger stock if it extends the current rally.

The post Is it too late to buy Ford stock as shares spike after Q3 results? appeared first on Invezz.

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