Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com -- Bank of America assessed both Ford and GM in a second-quarter preview note on Monday, telling investors that it sees one as better-placed than the other.
According to the bank, Ford is better positioned than General Motors (NYSE:GM) heading into second-quarter results, pointing to strong sales and a favourable product mix.
BofA wrote: “We see F better positioned relatively to GM given that F may be able to capitalize on strong sales while GM may face some mix headwinds in the quarter.”
Ford’s North American sales were the strongest since the second quarter of 2019, supported by the “From America, for America” initiative.
“Sales mix appears to be rich, and FX is likely to have turned into a tailwind,” BofA said.
Although tariffs are expected to pressure results, the bank believes Ford is on track to beat consensus expectations. It reiterated a Buy rating on the stock.
General Motors, also rated Buy, may report more muted results. “We expect GM results to be subdued in 2Q25 due to the effect of tariffs and weaker mix,” analysts wrote.
While sales were strong, BofA noted “some volatility on the production side,” particularly with the high-margin T1XX platform, where output was down 8% year over year.
Tariff impact could also hit GM harder than Ford, with mitigating actions not likely to take effect until later in the year. Investors will be watching for updates to 2025 guidance and assumptions on volumes and pricing for 2026 model-year vehicles.
BofA said demand for Ford products could remain strong into the third quarter, although it warned of potential weakness for the company’s Model e lineup by year-end.