Legacy automaker Ford (F) actually had a better October than you might have seen coming. Sales numbers out for the month revealed that overall sales in the United States jumped 15%. What went into those numbers is catching attention as well, and Ford shares were up nearly 1.5% in Monday afternoon’s trading.
Trucks and hybrids. These were the two major sales leaders for Ford, noted word from The Detroit News. Ford sold a total of 172,756 vehicles in October, and actually managed to take back some previously lost market share. It helped that Ford had a great month to compare itself to, as back in October 2023, Ford was facing a United Auto Workers strike that went most of the month.
While trucks and hybrids led the way, Ford found an unexpected bit of bad news in the mix: electric vehicle sales were actually down. Those sales dropped 8.3% against earlier numbers, thanks in large part to Ford Lightning F-150 sales declining in October. Further hit came when Ford announced it would shutter the Rouge Electric Vehicle Center, where the Lightning F-150 is produced, starting in a matter of weeks.
Recalls and Investigations
Meanwhile, Ford found itself in a sort of good news / bad news situation as it faced down a recall.Fully 6,212 2024 Mustang vehicles are getting a recall notice over an instrument panel that may not light up at startup, and may never actually light up to begin with. This should be fixed by a software update accomplished at any dealership, and notices will go out accordingly.
Better news came from the National Highway Traffic Safety Administration (NHTSA), though, who revealed that it was concluding an investigation into Ford vehicles’ engine failures. Engine replacements and extended warranties were sufficient inducement for the NHTSA to call the nearly 2.5 year investigation closed. The investigation, meanwhile, traced the problem back to intake valves on certain engine types, which made Ford’s planned mitigation steps sufficient.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on F stock based on six Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 6.14% rally in its share price over the past year, the average F price target of $12.04 per share implies 16.05% upside potential.
