When Ford Motor (F) peaked at over $24 at the start of 2022, suffering investors had a chance to exit. F
stock did not trade at that level for over 20 years. Ford’s stock price benefited from the Rivian (RIVN)
holding. As RIVN fell, so too did F stock.
General Motors (GM) peaked at the same time. The company’s grandiose announcement of investing in
electric vehicles excited investors.
High inflation, an economic slowdown, a supply chain problem, and higher commodity prices ended the
rally in EV stocks. Last week, GM and F stock succumbed to strong selling pressure.
According to Stock Rover quantitative research, both firms are entering a seasonally strong period. For
example, Ford showcased its EVs at the Detroit Auto show. That event usually marks a bullish start for
shares.
Ford has good chances of trading near a bottom from here. The stock’s price-to-earnings ratio is just 4.5
times. The 60-cent-a-share dividend yields around 4.5% to 5.0%. Dividend-hungry investors searching for
value should consider automotive stocks.
Ford and GM are discounted enough to accommodate for disappointments. Still, investors may wait for
the companies to post quarterly results before investing in them.
