Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Ford Motor Company (F) Playing the Waiting Game?

Page 1 of 2

With electric vehicles being all the rage lately, it’s easy to see why some investors might be turned off of Ford Motor Company (NYSE:F).

The company hasn’t taken a good shot at the electric vehicle market like major competitors such as Nissan and General Motors Company (NYSE:GM). In fact, the company said this month it won’t update the Electric Focus in 2014. Furthermore, the company hasn’t made an effort to subsidize costs of the EV as much as other firms. The car costs about $39,000, which is about $10,000 more than the Nissan Leaf and Chevrolet Volt.

But the firm is instead focusing on the major hybrid market, and has seen resounding success as the No. 2 manufacturer in the U.S.

Ford’s focus: wait and see

Ford Motor Company (NYSE:F)

Many may think that if Ford Motor Company (NYSE:F) wants to continue to be an executor of top vehicles, it will have to start making a bigger push into the electric vehicle market. But that lack of attention the firm has given could be a sign that it will wait until the market for EVs has grown to the point where it would support major investment.

Ford Motor Company (NYSE:F) has released the Focus Electric, which has actually received solid reviews, but because of its price and lack of marketing didn’t manage to make nearly as many sales as the Nissan Leaf or the GM Chevrolet Volt. In 2012, Ford Sold 685 Focus Electrics. That compares to 7,614 Leafs and 7,157 Volts sold in May alone.

The company has a PEG ratio at .57, which makes it in my opinion one of the most undervalued automakers, despite not manufacturing a major EV. The attractive PEG is largely due to high expectations from analysts who look at the company’s increasing quality, superb financial ratios, and fuel efficiency as catalysts for potentially lucrative years ahead.

Nissan finding the path

Nissan has staked itself as a leader in electric vehicles, and the company’s results will help Ford Motor Company (NYSE:F)determine if it really wants to make a plunge into the electric vehicle market. The firm has dropped the price recently of its Leaf by $6,000. And the firm’s overall results so far this year have been stellar, with a 25% sales jump in May on all of its vehicles. The company has recently added a new CEO, who has cut prices. Also, the value of the yen compared to the greenback has dropped, which gives Japanese automakers like Nissan incentives to lower prices to boost sales. Another attractive feature of this company is its decrease in the debt to total capital ratio. That number is just over 54%, which is a significant drop from a year earlier when it was nearly 80%. This shows Nissan is getting its balance sheet in order and could be a sign of even more solid financial numbers in the years ahead.

General Motors is offering incentives

Overall, General Motors Company (NYSE:GM) sold nearly a quarter of a million vehicles in May, which is up by about 3% from the previous year. Retail sales went up by 9% and fleet sales were lower by 10%. The company is planning to release a DC fast charger, which the firm says can charge 80% of the Volt’s battery in just 20 minutes. This could really improve sales, and as the technology improves, Ford Motor Company (NYSE:F) will likely make a move into the market.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!