For example, the F-Series continues to outsell the Silverado. Toyota Motor Corporation (ADR) (NYSE:TM) also had a strong run. Its Europe division was actually profitable (as were all of its divisions), and its American division sold almost 600,000 more cars on a year-over-year basis. Some of this increase came because at this time last year it was still recovering from the fallout of the Fukushima Daiichi disaster, and that must be taken into account. However, it seems to be once again on a strong growth path, which one can see reflected in the growth of their stock over the last several months. In other words, Toyota Motor Corporation (ADR) (NYSE:TM) is once again doing what it does best — making and selling good cars.
Furthermore, it has a better reputation than Ford Motor Company (NYSE:F). As a result, it is likely also worth considering as a worthy addition to your portfolio. Honda Motor Co Ltd (ADR) (NYSE:HMC) has had the weakest stock growth. The reasons for this can be seen in its sales growth. Its worldwide vehicle sales have actually shrunk by 3.7% year-over-year so far this year. The strongest shrinkage was seen in China with 6.9%. This is particularly troubling because that is where the greatest potential for growth lies. Furthermore, like Toyota Motor Corporation (ADR) (NYSE:TM), Honda Motor Co Ltd (ADR) (NYSE:HMC) was dealing with the Fukushima Daiichi disaster a year ago, and so should be seeing strong growth now. In other words, a year or two ago one would expect Honda to be roaring along like Ford and Toyota are right now, but it’s not. This raises significant questions about its long-term sustainability. The vehicle industry is just too competitive to long tolerate lackluster performance like Honda Motor Co Ltd (ADR) (NYSE:HMC) has been having recently.
| Ford | GMC | Toyota | Honda | |
| P/E | 10.74 | 12 | 15.24 | 14.53 |
Path forward
Ford Motor Company (NYSE:F) just had one of the most successful months in quite a long time in the United States, and its fortunes are looking up in the Asia-Pacific-Africa, and even Europe and South America. Furthermore, they are currently relatively cheap with a P/E of only 10.74. Furthermore, their dividend yield is a reasonable 2.6%. Thus, now may be a time to join all of the consumers and go for a ride with Ford. If it plays its cards right it should be able to deliver substantial growth over the next few years. Toyota is also worth looking into, and General Motors Company (NYSE:GM) might be, but the savvy investor should tread cautiously before investing in Honda.
The article Take a Drive With Ford Before it’s Too Late originally appeared on Fool.com and is written by Paul Sangrey.
Paul Sangrey has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Paul is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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