Ford Motor Co . (NYSE:F) stock reached a one-month peak today, climbing 2.12% in premarket trading as the company revised its annual financial outlook upward. The update comes after recent labor negotiations, with Ford now projecting an adjusted EBIT (earnings before interest and taxes) of $10 billion to $10.5 billion and free cash flow of $5 billion to $5.5 billion for the year, surpassing analyst expectations.
This positive shift in Ford's financial forecast marks a notable recovery from the year-to-date (YTD) decline of 8.9% in the company's share value, which had been impacted by the retraction of its October predictions amid strike actions. The decline had been in contrast to General Motors (NYSE:GM)' shares, which saw a lesser slide of 5.6%, but still lagged behind the S&P 500's modest 0.8% rise.
The company's outlook earlier in the year had been more optimistic, but concerns arose regarding the cost implications of a new U.S. labor contract. Ford anticipates an increase in cost per vehicle of approximately $900 by the end of 2028 due to this agreement.
InvestingPro Insights
Ford Motor Co.'s recent peak in stock price aligns with its improved financial outlook, and the real-time data from InvestingPro further illuminates the company's current market position. With a market capitalization of $42.39 billion and trading at a low earnings multiple with a P/E ratio of 6.77, Ford presents itself as a potentially undervalued investment opportunity. The company's revenue growth over the last twelve months, as of Q3 2023, stands at an impressive 14.82%, showcasing its ability to increase sales despite market challenges.
InvestingPro Tips highlight that Ford is expected to see net income growth this year and is a prominent player in the Automobiles industry. With analysts predicting profitability for the company this year and the stock price reflecting significant dividend yields of 5.67%, investors may find Ford an attractive option for both growth and income.
Subscribers to InvestingPro can access additional insights, including 11 analysts' revised earnings estimates and further details on Ford's financial performance. For those looking to deepen their investment research, the InvestingPro subscription is now on a special Cyber Monday sale, offering up to 60% off. Plus, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. There are 11 more InvestingPro Tips available for Ford, providing a comprehensive investment outlook.
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