Ford Motors Company (F) was recently downgraded to underperform by Zacks Equity Research. This move has just been a result of a continuing trend of weakness from Fords sales in Europe. This past May, Ford's sales in Europe were down 9.3% from their May 2011 sale numbers. So far total annual revenues have fallen 2% compared to last years as well.
With the grim European debt crisis still remaining, no one can really say for sure when and if Fords sales will recover. Ford is focusing more on expanding into emerging global markets such as China, India, Thailand, Brazil and Argentina for potential sales. They predict that by 2015 they could see about a 50% increase of their total sales, or about 80 million vehicles.
Ford has seen its share price take a beating recently, despite strong U.S. sales. The bears are definitely behind Ford at the moment, but for the time being hold off on buying any shares until this roller coaster evens out. Ford is definitely stuck in the mud at the moment, but there is no doubt that when the world economy straightens out again, Ford will recover stronger than ever. Confidence can be held in Ford because even during the collapse of 2008, Ford never borrowed any bailout money from the government, unlike its competitor General Motors (GM). The time to own Ford might not be now, but those who wait will be rewarded.
Disclosure: I am long F.
