We recently published a list of Jim Cramer’s Latest Calls Before 2025 Begins: Top 10 Stocks. In this article, we are going to take a look at where Ford Motor Co (NYSE:F) stands against other stocks in Jim Cramer’s latest calls before 2025 begins.
Jim Cramer in a latest program talked about the market reaction to the Federal Reserve’s latest rate cut and its guidance that suggested fewer rate cuts moving ahead.
“I guess you could say the baby got thrown out with the bathwater. It was truly hideous, a little unexpected, and yes, wicked. Even though the market’s barely oversold, we may not get that quick snapback we normally expect in a deeply oversold market,” Cramer said.
Jim Cramer said Jerome Powell’s comments and tone were “stern” and his conference call “confounded” investors. Cramer said inflation has not come down enough and that has made the Fed’s job difficult.
Cramer then talked about different sectors and companies that need rate cuts amid a slowdown.
“I really wish the Fed hadn’t been so defensive about the need to cut rates going forward. A slower approach would have been much better. If they had explicitly taken a wait-and-see approach before this meeting, we’d be in a better position. This time, they telegraphed the wrong thing, hence today’s meltdown. However, if the weaker part of the economy deteriorates further or inflation comes down, the Fed still has room to cut. Here’s the bottom line: a previously data-dependent Fed chose not to be data-dependent today with its pronouncements, and that’s what drove the market down. This happened despite the quarter-point rate cut—something that’s typically good news for stocks—but it turned out to be the very opposite.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we watched some latest programs of Jim Cramer and picked 11 stocks he is talking about. With each company, 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).
A Ford truck roaring down a highway, with powerful headlights blazing its way.
Ford Motor Co (NYSE:F)
Number of Hedge Fund Investors: 36
Jim Cramer in a latest program on CNBC expressed his concerns over rising warranty costs of Ford Motor Co (NYSE:F) and said the stock does not have a lot of “MOJO.”
“Ford does not have a lot of mojo in this note by Jefferies. This is one of the reasons—what can save the Fed when they cut. Ford has an inventory drifting up to 96 days. That says to me price cut, way too much, way too much. And by the way, that’s far more than GM—26. Wow. I mean, GM and Stellantis have much lower inventories.”
Ford shares have gained about 10% over the past 10 years, a stark contrast to the S&P 500’s 250%. Legacy automakers like Ford are grappling with challenges from newer competitors, the shift to electric vehicles (EVs), and the rapid rise of autonomous technology.
Ford’s Model e segment continues to drain cash as Ford works to strengthen its EV business. While the company has some strong products, it faces stiff competition from Tesla, Inc. (TSLA), Rivian Automotive, Inc. (RIVN), and other EV makers, leading to significant losses. Year-to-date, Ford’s EBIT has dropped to $8.1 billion, down from $9.4 billion in the same period last year.
Ford’s struggle to reduce warranty costs remains a concern. The company issued 62 recalls in 2024, far surpassing General Motors Company (GM), which had 33. Since 2021, Ford has had the industry’s highest recall rate, reflecting poorly on management’s efforts to lower warranty expenses and damaging the brand’s reputation.
Overall, F ranks 10th on our list of Jim Cramer’s latest calls before 2025 begins. While we acknowledge the potential of F, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
