5 Low Profile Stocks that Surprised in 2021

1. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 51

Gain in Share Price in 2021: 143%  

Although Ford Motor Company (NYSE:F) is a recognizable brand name, the stock has slipped under the radar with regards to the potential it offers in the EV market, considering the astronomical valuations of other EV firms with no legacy businesses. The company recently laid out a plan to double the production capacity for the Ford F150 Lightning, the all new electric pickup that surged in demand in the US and China since it was released last year. The truck had 200,000 pre-orders before it was even launched. Ford Motor Company (NYSE:F) also plans to increase EV battery capacity this year. 

There are many hedge funds that hold bullish views on Ford Motor Company (NYSE:F). At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Ford Motor Company (NYSE:F). 

In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:

“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”

You can also take a peek at 10 Stocks That Benefit from Global Chip Shortage and 10 Fintech Stocks Redditors are Buying.

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