Jim Cramer is Warning About These 4 Value Stocks

1. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 46 

PE Ratio: 4.15

Ford Motor Company (NYSE:F) is an automobile manufacturer. In mid-June, Jim Cramer outlined his bearish outlook on the company. Cramer placed the firm among a basket of equities with low price-to-earnings multiples that only looked good if the economy was growing. The journalist-investor warned that when investors bought such a stock, with an “extremely low price to earnings multiple” and yet it still went down, it was because these stocks “only look cheap thanks to the fact that the earnings estimates are too high”. 

On June 1, Goldman Sachs analyst Mark Delaney maintained a Neutral rating on Ford Motor Company (NYSE:F) stock and lowered the price target to $14 from $18, identifying supply chain problems as one of the main reasons behind the target decrease. 

At the end of the first quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Ford Motor Company (NYSE:F), compared to 53 the preceding quarter worth $1.7 billion.

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:

“Ford Motor Company (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 Motor Company (NYSE:F) 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.”

You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.

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