Ford Motor Company (F) is Steering Ahead

Page 1 of 2

Ford Motor Company (NYSE:F) posted strong February sales numbers with 9% year over year increase, outpacing the overall U.S. auto industry growth of 4%. This is the highest growth rate amongst all the major players in the U.S. auto industry. Ford Motor Company (NYSE:F)’s numbers were lower than the 11.9% that analysts at TrueCar.com were expecting, but this does not take anything away from the company. Rather, the solid results reinforce my faith in Ford Motor Company (NYSE:F)’s solid growth trajectory. Its valuation remains very attractive, and offer a solid proposition for the investors.

Ford Motor Company (F)

The U.S. auto industry trends

There was significant momentum in the sale of new cars and trucks in the U.S. The industry was facing strong headwinds from soaring gas prices, which rose to $3.78 per gallon in February, as well as higher social security taxes which are denting people’s disposable income. Despite the odds, vehicle buyers were not deterred and volumes rose a solid 4%. Annualized sale of cars and trucks was pegged at 15.4 million, higher than the 15.1 million expectations of economists polled by Thomson Reuters.

February was the fourth month in a row where the annualized sales mark was above 15 million units, reflecting a steady recovery in market conditions. It is estimated that the average age of a passenger car on the U.S. roads is around 11 years, and many are due for replacement sooner or later. This makes a solid case for the prospects of the U.S. auto industry, and has left all automakers scrambling for a piece of this pie.

The performances

Ford Motor Company (NYSE:F)’s solid 9% increase was driven by the 15% rise in sales of F-series pickups. These full size pick-ups have been America’s best sellers for over a quarter of a century, and are still sitting on top of the charts. It is worth noting that 2013 is the last year for the existing models, which are slated for a makeover in 2014. Ford Motor Company (NYSE:F) has done well to consistently refresh its product line and scores over General Motors Company (NYSE:GM), which has one of the most aged line-ups in the U.S. auto industry.

GM is also planning to renew 75% of its entire range within the next couple of years, but that is a story for another day. Meanwhile, Ford Motor Company (NYSE:F) has posted impressive numbers for its Explorer, Escape, and Fusion models, which were up 59%, 29%, and 28%, respectively. The company sold 195,822 vehicles in February. In the second quarter, the company is planning to increase its production by 9% in North America.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!