There are times when you just can't ignore a bargain and right now Ford (F) is getting to be more of a bargain as each hour passes. Don't just buy it, have a plan as to the proper time to buy it. Let's look at the numbers and see when you should press the buy button. First look at the chart of the price momentum:
The stock is still going down so don't buy just yet.
Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide. It operates in two sectors, Automotive and Financial Services.
The Automotive sector offers vehicles primarily under the Ford and Lincoln brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-sale vehicle services and products in the areas, such as maintenance and light repair, heavy repair, collision repair, vehicle accessories, and extended service contracts under the Ford Service, Lincoln Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft brand names.
The Financial Services sector offers various automotive financing products to and through automotive dealers. It offers retail financing, which includes retail installment contracts for new and used vehicles; direct financing leases; wholesale financing products that comprise loans to dealers to finance the purchase of vehicle inventory; loans to dealers to finance working capital, purchase real estate dealership, and/or make improvements to dealership facilities; and other financing products, as well as provides insurance services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.
Barchart technical indicators:
- When a great stock has nothing but sell signals that is usually a good time to have a plan to purchase at a bargain.
- Barchart 100% overall technical sell signal.
- Trend Spotter sell signal.
- Below its 20, 50 and 100 day moving averages.
- 42% off its 52 week high.
- 14 new lows and off 23.77% in just the last month.
- Relative Strength Index is 23.77% and still falling.
- Barchart calculates a support level at 9.89.
- Closed Friday at 10.89 which is below its 50 day moving average of 13.26.
The stock is still a Wall Street darling with all brokerage firms giving the stock a thumbs up
- Wall Street brokerage analysts have 5 strong buy, 8 buy and 6 hold recommendations current released with no negative outlooks.
- Sales are expected to increase by 14.70% this year and another 9.20% next year.
- Earnings are projected to increase by 3.10% this year, 1.50% next year and 7.55% annually for the next 5 years.
- With a P/E ratio of 5.3 the stock is selling at 47% of the overall markets P/E ratio.
- The stocks trailing P/E ratio is 7.2 so we again are trading at a P/E discount.
The stock is widely followed and most individual investors look for the stock to beat the market
- The 11,018 readers on Motley Fool that expressed an opinion voted 78% that the stock will beat the market.
- The more experienced All Stars also voted 75% positive for the sale result.
Summary: This is a global stock that recently formed a sales agreement with the Russian based Solles group that should assure new sales in Eastern Europe. The company looks for increased sales and earnings and if the stock return to normal P/E ratios long term investors could see a 15% - 17% total annual return over the next 5 years.
Now the plan: Don't buy Ford today but put the stock on your watch list and follow it down. Each day look at its hourly trading prices and buy after the upward momentum has been confirmed. Attached is a chart of its hourly prices with 20, 50 and 100 hourly moving averages. Keep your powder dry and wait for the right signal to buy in.
Good things come to those who wait.
Charts and technical data provided by Barchart