5 Best Affordable Blue Chip Stocks to Buy Now

2. Ford Motor Company (NYSE:F)

Share Price as of April 17: $12.87

Forward P/E Ratio: 8.24

Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans, and cars, and Lincoln luxury vehicles in the United States, Canada, the United Kingdom, Mexico, and internationally.

On April 14, UBS analyst Joseph Spak upgraded Ford Motor Company (NYSE:F) from ‘Neutral’ to ‘Buy’, while keeping the firm’s price target on the stock unchanged at $15. The target represents an upside of over 16% from the current price levels.

According to UBS, Ford’s earnings power is being underappreciated by investors, as the analyst sees a “credible path” for the carmaker to post an EPS of over $2 in 2027, up 17% from estimates. Beyond 2027, UBS expects Ford to move towards earnings of $3 per share, driven by its “product portfolio, a more lenient U.S. regulatory backdrop, combined with a more pragmatic EV strategy, an emerging battery energy storage system opportunity, and more focus on higher margin Pro software”.

Ford Motor Company (NYSE:F) is currently under pressure due to concerns over the ongoing higher gasoline and aluminum prices. However, UBS believes that these concerns are overdone, since aluminum prices are hedged and will not impact the company’s results this year.