Why Ford shares are behind the pack
Ford’s sales numbers are good but its stock is down — what gives?
On Wednesday, Ford reported its best November sales numbers since before Covid hit, but it didn’t do much for the industrial icon’s sputtering share price.
The automaker’s share price has lagged inveterate rival GM pretty consistently this year, even though both companies face one of the more challenging backdrops for the industry in recent memory, from issues with Chinese operations to the tough-to-navigate transition to EVs.
But Ford has fallen further behind since July, when the company missed Wall Street’s expectations for earnings by a country mile thanks to the costs of safety recalls and fixes for older models. Those costs have squeezed the company’s operating margins sharply.
The company’s Q3 earnings numbers, issued in late October, didn’t do much to improve the trajectory of the shares, as the company issued a tepid outlook for full-year earnings, and comments from executives did little to assuage analysts of worries that the quality issues are over and done with.
Maybe it’s time for Ford to go back to its old motto from the 1980s.
