Ford
Ford Motor Co. (NYSE: F) has reorganized itself around its electric vehicle (EV) plans. The company shipped 8,760 of its all-electric F-150 Lightning pickups since launching the vehicles in June. In September, Ford sold nearly 4,700 EVs, up nearly 200% year over year.
However, the company’s truck sales have dropped by 18.3% year over year, and total vehicle sales are down 8.9% through the first nine months of the year. Ford is even offering a 3.9% financing deal on new F-150 pickups, the best-selling vehicle in the country for more than 40 years. Ford does not want to be left behind when EVs take over, but investors may not have that much patience.
Analysts remain mixed on the stock, with 10 of 23 brokerages having a Hold rating and 10 more with Buy or Strong Buy ratings. At a share price of around $12.50, the upside potential based on a median price target of $14.00 is 12%. At the high price target of $28.00, the upside potential is 124%.
Third-quarter revenue is forecast at $37.11 billion, down 2.1% sequentially but 11.7% higher year over year. Adjusted EPS are forecast at $0.30, down 55.7% sequentially and by about 41% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $1.99, up 25.2%, on sales of $147.23 billion, up 16.7%.
Ford stock trades at about 6.3 times expected 2022 EPS, 6.8 times estimated 2023 earnings of $1.83 and 6.9 times estimated 2024 earnings of $1.71 per share. The stock’s 52-week range is $10.61 to $25.87. Ford pays an annual dividend of $0.60 (yield of 4.92%). Total shareholder return for the past year was negative 21.3%.
Meta Platforms
Shares of Meta Platforms Inc. (NASDAQ: META) have plunged by 60% over the past 12 months. The metaverse has taken some big lumps recently, and considering the recent performance of Snap, Meta’s online ad business is not expected to do much either.
Analysts are expecting revenue to fall for the second consecutive quarter, and Altimeter Capital, which held 2 million Meta shares at the end of June, wrote to Meta CEO Mark Zuckerberg recommending a 20% cut in staffing and limiting spending on the metaverse to $5 billion annually. Zuckerberg essentially controls the company and, if the past is any guide, is not likely to pay much attention to any criticism.
Of 55 analysts covering the stock, 39 have a Buy or Strong Buy rating and 14 have Hold ratings. At a share price of around $129.80, the upside potential based on a median price target of $204.00 is 57.2%. At the high target of $466.00, the upside potential is 259%.
Meta is expected to report third-quarter revenue of $27.43 billion, down 23.2% sequentially and 5.4% lower year over year. Adjusted EPS are pegged at $1.89, down 6% sequentially and by 41.3% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $9.86, down 27.4%, on sales of $1117.18 billion, down 0.6%.
The company’s stock trades at about 13.2 times expected 2022 EPS, 12.0 times estimated 2023 earnings of $10.83 and 10.4 times estimated 2024 earnings of $12.45 per share. The stock’s 52-week range is $122.53 to $353.83. Meta does not pay a dividend, and total shareholder return for the past year was negative 60%.
Originally posted at 24/7 Wall St.
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