Is Ford a buy or sell in November?
- Wall Street is „bullish“ on Ford and this stock could be a good "buy" opportunity
- The technical picture implies that the price may advance above $8.5 this November
- Joe Biden has a big chance to become the next president of the U.S.
Ford shares have advanced from $6.9 above $8.3 in less than thirty days and the current price stands around $7.99. The technical picture implies that the price may advance above $8.5 this November but there are also some obvious risks when it comes to buying Ford (NYSE: F) shares.
Fundamental analysis: Even with the COVID-19 pandemic, the business of Ford is going well
Ford Motor Company is an American multinational automaker that sells automobiles and commercial vehicles under the Ford brand, and most luxury cars under the Lincoln brand. The next several months will be competitive for the global auto industry but even with the COVID-19 pandemic, the sale of Ford cars is going well.
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Ford sales in the U.S fell only 4.9% in Q3 to 551,976 vehicles which is above expectations. Truck sales rose 0.6% to 311,751 units while SUV sales were down 0.7% to 191,803 units.
The negative news is that the car sales plunged 37.5% to 48,424 units in Q3 but despite the challenging pandemic environment, Ford had its best third quarter of pickup truck sales since 2005.
Ford Company also unveiled plans to build the electric F-150 EV and this will certainly add new customers and increase the revenues of the company. The attention of investors is focused currently on the US presidential elections and the US stock market is advancing despite ongoing election uncertainty.
Joe Biden has a good shot at becoming the 46th President and Biden’s camp hopes they will cross the threshold of 270 today. The price of Ford stock didn’t change too much after elections show no clear winner and the current price is very close to the resistance level that stands around $8.
Shares of Ford could be a good investment option and most financial analysts are also expecting its price to rise considerably in the next several years. If we compare total stockholders’ equity of $30.85B and the market capitalization of $31.79B, we can notice that this stock is not overvalued and maybe now could be a good time to buy Ford shares.
Another useful information for potential investors is that this company has paid more than $7B dividends to its shareholders in the last three years and this number can be even bigger in the future. Some estimates say that the auto market is expected to grow only slightly in the next several years but the Ford Company will be one of the major players.
Technical Analysis: Bulls remain in control of the price action
If you decide to trade Ford (NYSE: F) shares you should have in mind that the price could also weaken in the upcoming days pressured by the uncertainty around the global economy. Ford recall recently more than 700K vehicles in North America and the company is targeting to eliminate 1,400 U.S. salaried jobs by the year.
On this chart, I marked current resistance and support levels. The current supports levels are $7.5 and $7, $8, $8.5 and $9 represent the current resistance levels.
If the price jumps above $8.5 it would be a “buy” signal and we have the open way to $9. Rising above $9 supports the continuation of the bullish trend and the next price target could be located around $10.
If the price falls in the upcoming period, every price in a range from $5- $6 could be a very good opportunity to invest in Ford shares.
The US elections are closely watched, according to the latest news Biden is taking the lead in Georgia but the US presidential election continued to progress with a winner not yet officially announced. Shares of Ford could be a good investment option in November but you should have in mind that there are also some obvious risks. If the price jumps above $8.5 it would be a “buy” signal and we have the open way to $9.