Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Are Street Analysts Bullish On Ford Motor Co. (F) Right Now?

We recently compiled a list of the 10 Best Most Active Stocks To Invest In Now. In this article, we are going to take a look at where Ford Motor Co. (NYSE:F) stands against the other active stocks.

Are Additional Rate Cuts a Necessity?

The economic landscape is currently marked by mixed signals. The Fed has indicated the potential for additional rate cuts due to weaknesses in the manufacturing sector, despite signs of recovery. While the overall economy remains strong, currency dynamics have shifted, with the US dollar weakening and the euro strengthening. Interest rate yields have fluctuated, suggesting potential changes in investor sentiment. Amidst this complex environment, the Dow continues to hover near record highs, reflecting cautious optimism among market participants.

As stakeholders navigate these developments, they will need to carefully consider how they may influence investment strategies and market behavior in the coming months. CNBC’s Rick Santelli recently covered this situation, which we talked about in our article on the 10 Best Performing Stocks in 2024. Here’s an excerpt from it:

“Chicago Fed President Austan Goolsbee has indicated that many more rate cuts may be necessary over the next year due to signs of weakness in the manufacturing sector. CNBC’s Rick Santelli, who was reporting on September 23, noted that while manufacturing has faced challenges, there are indications it might be recovering slightly, as evidenced by a recent production increase of 0.8%.

He referenced comments…. that the economy is experiencing strong growth and robust consumer spending, which he believed contradicted the concerns raised by Goolsbee. Santelli pointed out that the Dow Jones Industrial Average is currently at all-time highs, suggesting that market sentiment remains positive despite underlying economic weaknesses.

Further discussing the economic landscape, he remarked on the currency markets, noting that the US dollar has fallen to its lowest level since March 2022. In contrast, the euro has reached its strongest level since April 2022. This shift in currency dynamics reflects broader economic trends…”

However, a lot of analysts do not have an opinion as nuanced as that of Santelli. For instance, Michael Kantrowitz, Piper Sandler’s chief investment strategist joined CNBC’s ‘Power Lunch’ on September 23 to discuss why smaller businesses and consumers need the benefits from more rate cuts.

In a conversation regarding the challenges facing US car manufacturers, it was noted that the biggest threat they encounter is the influx of Chinese automobiles into the US market. This concern contrasted with the insights from the President of the Bank of Chicago, who stated that ongoing rate cuts will continue to benefit smaller businesses and consumers who are currently adjusting to higher interest rates. Kantrowitz emphasized the significant impact that lower interest rates can have on the consumer economy, particularly given the substantial amount of debt tied to credit lines and credit cards. As adjustable-rate mortgages decrease, this easing of financial conditions is expected to be beneficial.

Kantrowitz pointed out that before last week, financial conditions had been easing primarily for larger corporations, as evidenced by the S&P 500, which did not require a rate cut. However, small businesses and consumers, who are more closely tied to the prime rate set by banks, had not experienced similar relief until recently. The last report indicated that small businesses were paying an interest rate of 9.5% for 3-month borrowing. This recent easing represents a crucial first step for Main Street, although the strategist believes further cuts are necessary.

He noted a broadening market trend following the July 11 CPI report, highlighting that commercial real estate has emerged as one of the best-performing sectors this quarter, alongside utilities and regional banks. However, it was emphasized that while rate cuts can benefit certain areas indirectly, such as those affected by lower tenure rates, they do not necessarily provide direct support.

Looking ahead at interest rates, there was speculation about how low they might go in the next year. Kantrowitz suggested that policy rates could indeed fall into the 3% range but cautioned that markets might be overly aggressive in their expectations. The anticipated rise in unemployment will play a critical role in shaping equity and fixed-income markets; however, if unemployment increases at a slow and steady pace, as it has been, it may not pose significant challenges to market stability.

Kantrowitz’s opinion reflects a cautious optimism regarding economic conditions as stakeholders face uncertain conditions while keeping an eye on interest rates and their broader implications for various sectors within the economy.

Methodology

We sifted through Yahoo Finance’s list of the most active stocks that are experiencing high trading volumes. We looked at the top 15 stocks to find the ones that were the most popular among elite hedge funds. We then narrowed down our list to the 10 stocks with high trading volumes and that were the most popular among hedge funds. The stocks are ranked in ascending order of their trading volumes, as of September 23.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A Ford truck roaring down a highway, with powerful headlights blazing its way.

Ford Motor Co. (NYSE:F)

Volume: 35.091 million

Average Volume (3-Month): 59.148 million

Number of Hedge Fund Holders: 47

Ford Motor Co. (NYSE:F) is a multinational automobile manufacturer that sells automobiles and commercial vehicles (including cars, trucks, and SUVs) under the Ford brand, and luxury cars under its Lincoln brand. It has a long history of innovation and has been at the forefront of automotive technology, including the development of EVs and autonomous driving systems.

Of the $44.81 billion revenue generated in Q2 2024, up 5.62% from the year-ago period, Ford Pro, a key division for the automaker’s profitability, raised revenue by 21% year-over-year to $5.6 billion in the first half. Subscriptions for Ford Pro software also grew 35% in the second quarter.

The company canceled a three-row EV SUV originally planned for 2027, which was projected to account for 58,000 units in 2028. The automaker announced that the first EV from its California-based skunkworks team will be a mid-size pickup truck, now expected to launch in 2027.

This is slightly delayed from S&P’s earlier forecast but aligns with broader expectations for its new EV lineup rollout starting in 2027. It is heavily investing in its electrification strategy, committing $22 billion through 2025 to advance EVs. Key models like the Mustang, F-150, and Transit are being electrified.

The company is expanding its manufacturing footprint and collaborating with other automakers to improve battery technology to achieve global carbon neutrality by 2050.

Management announced that the company will reduce its capital expenditures for all EVs from 40% to 30%. This shift reflects slower-than-expected EV adoption and the challenges automakers face in achieving profitability with these vehicles. Yet, it’s positioned for growth as certain changes indicate the company’s focus on capital discipline and suggest the potential for reducing near-term losses in its Model-e segment.

Overall F ranks 3rd on our list of the most active stocks to buy. While we acknowledge the potential of F as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than F but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…