The Country Caller sheds light upon the Street’s take on Ford stock
Ford Motor Company (NYSE:F) stock closed at $13.44 on Friday, down about a meager 0.15% against the previous day’s close. Since the start of this year, through May 27, 2016, the stock price has plunged 4.54%.
Earlier this year, the Detroit based automaker announced its plans to gear up and manufacture a long range all-electric vehicle which would have a range of over 200 miles, giving cut-throat competition to another car maker from Detroit, namely General Motors Company (NYSE:GM). Moreover, not only GM should be worried, but the new all-electric vehicle by Ford is deemed to pose a threat towards Tesla Motors Inc (NASDAQ:TSLA) as well.
However, for now, Ford has come up with the 2017 Ford Fusion Energi plug-in hybrid. The vehicle is expected to come with an additional driving range of 60 miles as compared to the iteration launched in 2016.
Furthermore, United States’ automobile industry as a whole is expected to witness a decline in sales for the month of May. The dip in automotive sales may come on the heels of two major factors. First, fewer selling days during the month and second, GM’s plan to curb down the rental sales. Kelley Blue Books projects a dip of 6.2% in the automobile sales during May, while TrueCar expects a decline of 4%.
According to Kelley Blue Books, only Nissan and Subaru may be the winners during the month as the automakers have announced a release of new models.
A majority of the Street suggests that the stakeholders should Hold their investments in Ford stock. Out of 20 analysts who analyzed the stock, seven analysts suggested investors to Buy the stock, 12 analysts advised the shareholders to Hold the stock, while the remaining one analyst believes shorting the stock would be appropriate.