5 Most Undervalued Auto Stocks According To Hedge Funds

2. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 47

P/E Ratio as of January 19: 5.40

Ford Motor Company (NYSE:F) is a Michigan-based company that designs, manufactures, and services Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It operates through three segments – Automotive, Mobility, and Ford Credit. Ford Motor Company (NYSE:F) is one of the most undervalued stocks to invest in. On January 5, the company reported gains in EV market share and strong truck sales. According to a company data release, Ford sold 179,279 vehicles in December 2022, up from 173,740 in December 2021.

On November 30, Citi analyst Itay Michaeli raised the price target on Ford Motor Company (NYSE:F) to $14 from $13 and maintained a Neutral rating on the shares. The analyst updated his model to reflect the Q3 results and recent data points. The new target represents slightly higher multiples reflecting Ford Motor Company (NYSE:F)’s improved auto free cash flow conversion this year, the analyst wrote in a research note. However, the analyst would like to see a more attractive entry point in the shares.

According to Insider Monkey’s data, 47 hedge funds were long Ford Motor Company (NYSE:F) at the end of September 2022, compared to 46 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with nearly 45 million shares worth $503.6 million. 

Here is what Baron Fund has to say about Ford Motor Company (NYSE:F) in its Q1 2022 investor letter:

“Ford (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 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.”