March 5, 2025 – Ford Motor Company (NYSE: F) has faced a turbulent market environment, with its stock declining 5.1% over the past month, underperforming the S&P 500’s 2.3% drop. Despite recent challenges, Ford continues to attract significant investor attention as analysts adjust their forecasts and reassess the company’s outlook.
Ford’s Stock Performance Under Pressure
Ford shares have faced consistent selling pressure, reflecting broader concerns in the automotive sector. On Tuesday, March 4, shares fell 2.5%, hitting an intraday low of $9.07 before closing at $9.16. This marks a significant drop from its previous close of $9.39. Compared to the Zacks Automotive – Domestic industry, which has plummeted 23.1% in the past month, Ford’s decline seems moderate, yet still concerning.
Analyst Downgrades and Earnings Projections
The automaker’s stock outlook has been clouded by multiple analyst downgrades. Several firms have adjusted their ratings and price targets downward:
- Jefferies Financial Group downgraded Ford from “hold” to “underperform” and cut its price target from $12.00 to $9.00.
- Barclays reduced its rating from “overweight” to “equal weight,” slashing its price target from $13.00 to $11.00.
- Wells Fargo maintained an “underweight” rating and dropped its price target from $9.00 to $8.00.
According to MarketBeat, Ford currently holds three “sell” ratings, ten “hold” ratings, and four “buy” ratings, with an average price target of $11.89—suggesting some potential upside from current levels.
Mixed Valuation Metrics Suggest Potential Discount
Ford’s valuation remains a point of debate. The company has a market capitalization of approximately $36.21 billion, with a price-to-earnings (P/E) ratio of 6.26 and a price-to-earnings-growth (PEG) ratio of 0.61. These metrics indicate that Ford’s stock could be trading at a discount relative to industry peers. The Zacks Value Style Score gives Ford an ‘A’ rating, reinforcing the argument that the stock may be undervalued despite near-term headwinds.
Earnings Outlook and Investor Sentiment
Ford’s earnings expectations have taken a hit, with analysts projecting a loss of $0.01 per share for the current quarter—a stark 102% decline year-over-year. Over the past month, the consensus earnings estimate has been slashed by 102.7%, reflecting growing concerns over profitability.
For the full fiscal year, Ford is expected to post earnings of $1.37 per share, marking a 25.5% decline from the previous year. Despite these bearish projections, the company exceeded expectations last quarter, reporting earnings per share (EPS) of $0.39 versus the $0.35 estimate.
What’s Next for Ford?
As Ford navigates economic uncertainty, supply chain disruptions, and an evolving automotive market, investors remain cautious. While some see the stock’s current valuation as an opportunity, others are wary of continued earnings pressure and analyst downgrades. With the industry experiencing significant volatility, all eyes are on Ford’s next earnings report and its ability to turn sentiment around.
