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Ford Motor Co (NYSE:F) shares fell 2% on Tuesday morning earlier than surging later to trim intraday losses. Ford experiences its fiscal second-quarter outcomes on Wednesday, and analysts are optimistic of a major top-line development amid rising EU gross sales.
Zacks Fairness Analysis analysts wrote:
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In a bid to make the Europe section extra worthwhile and push the event of electrical automobiles (EVs) within the continent, Ford’s large restructuring plan for the area is more likely to have reaped constructive outcomes for the quarter.
The corporate plans to make all its passenger automobile gross sales within the EU EVs by 2030. It additionally plans to make two-thirds of all business automobiles gross sales, both electrical or plug-in hybrids.
Analysts have raised Ford’s EPS estimates for Q2 3 times amid rising optimism.
Must you spend money on Ford shares in Q3 2021?
Though Ford’s shares are up 62% this yr, the inventory might nonetheless acquire considerably in Q3 based mostly on earnings development expectations. Analysts anticipate Ford’s EPS to develop by 175% this yr earlier than rising almost 49% subsequent yr. The corporate might additionally expertise a median 5-year annual earnings development price of about 55% based mostly on EPS forecast for the interval.
From a valuation perspective, Ford trades at a lovely P/E ratio of 14.21 and a extremely profitable ahead P/E of seven.67, making the inventory a compelling alternative for worth traders. As well as, its PEG ratio of simply 0.26 might additionally entice high-growth traders.
Technical overview: Ford inventory value forecast for Q3 2021
Technically, Ford shares look like buying and selling simply above the 100-day transferring common within the intraday chart. As well as, the inventory additionally trades centrally throughout the ascending channel formation and within the 14-day RSI, suggesting a possible continuation of the present pattern.
Subsequently, traders can goal rebound income at roughly $14.72 or increased at $16.19. The assist ranges are $12.66 and $11.31 within the quick time period.
Backside line: why purchase Ford shares now?
Though Ford shares pulled again on Tuesday, the inventory might bounce again considerably forward of earnings on Wednesday after markets shut.
The present pattern formation additionally appears robust to proceed for the following few days, at the very least, which means there may be nonetheless time to experience the pattern. Subsequently, it might be finest to purchase Ford shares forward of earnings after Tuesday’s upbeat analyst experiences.
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