5 Best Undervalued Automobile Stocks to Buy Now

2. Ford Motor Company (NYSE:F)

PE Ratio as of July 8: 4.06

Number of Hedge Fund Holders: 46

On July 4, Ford Motor Company (NYSE:F) reported that its sales in the U.S. in June 2022, increased by 31.5% year over year to roughly 152,000 units. The majority of share gains came from the company’s F-Series, Explorer, and Expedition vehicles and also the company’s battery-electric offerings. Ford Motor Company (NYSE:F) also reported that its F-150 Lightning was America’s best-selling electric truck in June.

As of June 1, Goldman Sachs analyst Mark Delaney has a $14 price target and a Neutral rating on Ford Motor Company (NYSE:F).

As of July 8, Ford Motor Company (NYSE:F) is offering a forward dividend yield of 3.44% and has a trailing-twelve-month PE ratio of 4.06.

At the close of Q1 2022, 46 hedge funds were bullish on Ford Motor Company (NYSE:F) and held stakes worth $1.23 billion in the company. This is compared to 53 positions in the previous quarter with stakes worth $1.70 billion.

In Q1 2022, D E Shaw raised its stakes in Ford Motor Company (NYSE:F) by 10%, bringing them to $528.36 million. As of March 31, D E Shaw owns over 31.24 million shares of Ford Motor Company (NYSE:F) and is the most prominent shareholder in the company.

Here is what Baron Funds had to say about Ford Motor Company (NYSE:F) in its first-quarter 2022 investor letter:

“Ford (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”