Ford: Rapid Downward EPS Revisions Can Become A Self-Fulfilling Prophecy
Summary
- Betting on Ford stock at this point can be very risky, despite the 6.5% dividend yield.
- Ford has never done well in times of an economic slowdown over the last few decades, and the current tariff war could further hurt the supply chain of the company.
- The stock has received 19 down revisions of EPS in the last 3 months, compared with only 1 up revision.
- “Trump put” might not work for Ford if there is an overall slowdown of the economy.
- Ford’s forward PE ratio for the fiscal year ending Dec 2027 is a modest 5.8 but the highest EPS estimate is almost 3X the lowest EPS estimate, which shows huge future uncertainty.
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