Can Ford Bounce Back in 2020?
Ford Motor Company (NYSE: F) is up 19% year-to-date at $9.10, but the gain looks a little less sweet compared to the $10.50 achieved early in Q3. Things get even worse on the five and 10-year charts, which show the stock breaching $17 as recently as August 2014. The company has lost 47% of its market value in half a decade, and the latest slide was merely the latest in a series of setbacks for the car stock.
Ford's revenue has generally followed a slow, positive growth trend since the end of 2009 when the immediate impacts of the Great Recession began to fade. The company made a strategic decision last year to phase out sedan sales, focusing capital investments in trucks and SUVs. Since then, management accelerated this transition, and doubled-down on core markets that are producing the biggest wins, and turning away from markets like China. Analysts and investors have generally agreed on the short-term efficacy of this move, but it could have negative long-term ramifications if consumer tastes are impacted by changing factors, such as rising fuel prices.
Image Source: Ford
Source Fool.com
