Ford (NYSE:F) shares are now back to the $10 level after the company reported good first-quarter results. With the dividend yield in the 6% range, expect more capital gains from F stock in the months ahead.
Ford’s 2019 action plan involves improving the product mix to increase ATPs and margins. IT will add new products, strengthen its EV play (with Rivian) and will leverage its business from alliances. It already partnered with VW, Mahindra and Rivian to share technologies and resources to cut costs.
New Products
Key product launches in mid 2019 are the Transit 2T, the Escape/Kuga, and in late 2019, a super duty truck. In the utility category, Ford will launch the Corsair and Puma. The clear product pathway will lead to over $1 billion in added EBIT in 2021, compared to 2017 levels.
Q1 Highlights
Ford reported revenue of $40.3 billion, adjusted EBIT of $2.4 billion, and liquidity of $24.2 billion in cash. Adjusted EPS was $0.44. The strong start should reinforce investor confidence over the company’s prospects for this year and beyond.
Investors should consider shifting out of Tesla (NASDAQ:TSLA) and GM (NYSE:GM) stock and bet on the Ford turnaround finally gaining both shape and momentum.
