Ford stock down 35%: I am not sure that I would be a buyer of Ford

By:
on Apr 4, 2022
  • Ford shares are down roughly 35% from their high in mid-January.
  • Steve Grasso explains why he still doesn't see it as an attractive buy.
  • Ford separated its EV business as a new “Model e” division last month.

Shares of Ford Motor Company (NYSE: F) are down roughly 35% from their high in mid-January, making the stock quite attractive in terms of valuation. Still, Steve Grasso is “iffy” in buying Ford at current levels.

Grasso’s remarks on CNBC’s ‘Power Lunch’

Interestingly, however, the CEO of Grasso Global, who is also a fan of American muscle, does see some signs of positivity in Ford. On CNBC’s “Power Lunch”, he said:

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The stock chart doesn’t look good. But it’s not terrible either. The one tailwind that I heard from the vice president of sales was that the intrinsic volume was up 74%. That means we are coming to end with supply constraints.

Supply challenges had weighed on Ford’s Q4 results that came in shy of Street expectations in February.

Why Grasso wouldn’t want to buy Ford shares

On the flipside, Grasso cited fear of recession for why he wouldn’t hop onto this stock. Yield on the U.S. 2-year Treasury surpassed the one of the 10-year on Monday. He noted:

Would I be a buyer of Ford? I’m not sure. Because if you’re going to have an inversion, that recession will happen sooner rather than later, even if it’s a year out or a year and a half out. That could impede people’s attention on buying a new vehicle.

Last month, Ford separated its EV business as a new “Model e” division – a move Jim Cramer dubbed the “kill Tesla plan”.

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