We recently published a list of the 10 Stocks to Buy and Sell Before the Third Quarter 2024 According to Jim Cramer. Since Ford Motor Co (NYSE:F) ranks 6th on the list, it deserves a deeper look.
Jim Cramer in a latest program discussed the changing consumer trends in the US, wondering whether the consumer is just “fed up” of paying high prices and becoming “frugal.” Cramer said this “frugal thesis” is not “obvious” but he has recognized this latest trend based on some new developments. Cramer named a few consumer companies that are benefitting from the changing consumer behavior because of their discounted price offerings. Cramer rejected the notion that dollar stores are cheap. He said these stores raise prices “aggressively” and calling them dollar stores has become a “misnomer.” The CNBC host said the consumers “want prices lower” and that’s why dollar store companies are getting crushed in the new environment.
Jim Cramer also said the “renting society” is winning the “owning society,” pointing to a new trend where consumers are renting boats instead of buying them to enjoy the experience without spending a fortune.
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked some stocks he’s recommending investors to buy or sell. With each stock we have mentioned the number of hedge fund investors. 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).
Ford Motor Co (NYSE:F)
Number of Hedge Fund Investors: 41
Jim Cramer recently said that he thinks Ford Motor Co (NYSE:F) stock should be bought on the dip. While discussing the stock on CNBC, Cramer rejected the notion that F series is “not doing well.”
“That is not correct. The F series continues to take the share.”
Wall Street is also bullish on Ford Motor Co (NYSE:F). Morgan Stanley’s Adam Jonas recently said in a bullish note that Ford is a top auto sector pick amid Ford Motor Co (NYSE:F) changing EV strategy. Jonas thinks Ford Motor Co (NYSE:F) understands that its EV strategy needs to change “materially” as Ford looks to dial back vertical integration in favor of partnership and cooperation. Jonas thinks market gains in the pickup segment, alliances with strategic partners such as Volkswagen and Google and strong implementation of Ford+ strategy are some of the growth catalysts for the stock. Morgan Stanley has an Overweight on Ford Motor Co (NYSE:F) and a price target of $17.00.
BofA expects Ford Motor Co (NYSE:F) operating EPS growth to be modest this year but accelerate after that. Ford Motor Co (NYSE:F) per-share profit by 2026 is expected to come in at $3. Ford Motor Co (NYSE:F) forward P/E ratio of 6.09 is much lower than the industry average of 15 and its historical P/E of 9.1.
Overall, Ford Motor Co (NYSE:F) ranks 6th on Insider Monkey’s list titled 10 Stocks to Buy and Sell Before the Third Quarter 2024 According to Jim Cramer. While we acknowledge the potential of Ford Motor Co (NYSE:F), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Ford Motor Co (NYSE:F) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
