All signs indicate this is the RIGHT time to buy Ford Stock. Peter Nesvold, a veteran analyst with Jeffries & Co., says Ford's "upcoming models are better-positioned for high gas prices." It looks like this is a good time to buy stock in this Dearborn auto maanufacturer.1
Ford shares closed at $15 last week, 8 1/2 times its earnings per share. Need snother reason to pay into Ford now? "The automaker will earn pretax profit margins of up to 9.6% of sales this year and 9% next year," Morgan Stanley analyst Adam Jonas estimates. That is almost double the 4.8% margins Ford earned in 2010. He also expects Ford to generate about $38 billion in cash through 2015. Ford also has more all-new models coming in crucial market segments in the next 18 months, added Peter Nesvold.2
Nesvold also stated that if you're looking at investments to get into right now, "for the next six to 12 months, the timing favors Ford."3
Vehicles like the new Ford Fiesta are attracting attention from auto buyers who are young and looking for quality at a reasonable price. New car buyers are opting for base model cars, usually with manual transmissions, and adding features like navigation or iPod/Bluetooh connectivity.
Models like this from Ford can be seen in person today at Lindsay Ford of Wheaton - 11250 Veirs Mill Road, Wheaton, MD.