- Fan bases can do a lot for a brand, series or company.
- Ford Lightning fans jumped in line after announced price cuts.
- But is that enough for Ford Motor Co. (NYSE: F) stock?
| Most people around our office know I am a huge soccer fan.
The array of soccer jerseys I wear throughout the week likely gives it away.
Aside from Lionel Messi, one of my favorite players is Steven Gerrard — a former midfielder for Liverpool.
And one post-match quote from Gerrard has stuck with me: The fans have played a massive part in getting us to where we are, but the job’s not finished.
He knows that fans can motivate athletes in a massive way.
But it’s also true for other things.
Today, I’m going to tell you how fans have brought things back from the dead … including one product for a major American business.
Then, I’ll use Adam O’Dell’s proprietary Green Zone Power Ratings system to tell you if you should become a fan of this company’s stock through purchasing its shares. Fans Are a Powerful Voice … Just Ask Hollywood In the midst of an actor and writer strike, Hollywood studios have vastly changed the shows we’ll be able to watch in the upcoming fall season.
These seasons are make-or-break for television shows, actors, writers and fans. Fail to grab an audience … you’re canceled. Make a breakout … your show is set for years.
But, it doesn’t always work that way.
I am a big fan of the sci-fi television series The Expanse. It started on the Syfy channel in 2015, but the network canceled it after three seasons because it wasn’t profitable enough.
So fans banded together and petitioned Amazon to pick the show back up. These efforts included flying an airplane over Amazon Studios with a banner that read “#SaveTheExpanse.” Fans, including the owner of Craigslist and legendary Game of Thrones creator George R.R. Martin, even sent then-Amazon CEO Jeff Bezos personal emails about the series.
It worked … Amazon picked up The Expanse and ran it through 2022.
That’s just one example of the power of enthusiasm in numbers.
Another American company is feeling that same influence now.
 | From our Partners at Altimetry Research. The next major selloff could be just days away… And seven powerful (yet completely unknown) insiders will be behind it all – and help corporate executives make a killing as it plays out. Here’s the full story. |
Ford and a Lightning Strike Ford Motor Co. (NYSE: F) jumped into the deep end of electric vehicle (EV) production when it unveiled its F-150 Lightning electric truck in 2021.
But demand was sluggish out of the gate due to the high cost and battery problems. Ford even shut down production to revamp its Ford Rouge EV Center in Dearborn, Michigan.
Then it went a step further… It pulled a Tesla and dropped the price of the EV by $6,000 to $10,000.
And Lightning fans responded.
Last week, the company announced it reopened its Lightning production line and its EV unit chief said Ford saw a “sixfold increase” in new orders for the truck.
So, in a sense, fans spoke out after a price drop and have brought the F-150 Lightning back to life.
But does that mean you should be a fan of Ford stock?
That’s where Green Zone Power Ratings comes in… Ford and the Green Zone Power Ratings System Ford Motor Co. (NYSE: F) rates 36 out of 100 on our system. That means we are “Bearish” on the stock and expect it to underperform the broader market over the next 12 months.  (Click here to view larger image.) While the stock rates low on Size (0) due to its massive $53.6 billion market cap, it also gets hit on Quality (39).
A big reason for that is its 14.1% gross margin … which is below the 20% average gross margin of the consumer vehicles industry. The company also has single-digit net and operating margin.
The stock is prone to big price swings, hence its 27 out of 100 rating on Volatility.
After hitting a 52-week high at the beginning of July 2023, Ford stock fell more than 11% over the rest of the month.
Its Growth rating is “Neutral” with a one-year annual earnings-per-share growth rate of -111.1%.
Bottom line: While Ford is looking to capture Lightning in a bottle with its revamped EV efforts, its financials and stock performance is lacking.
Reopening the Lightning production line can pay off in the long run, but for now, this is a stock you want to avoid.
That’s all for now…
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
Check Out More From Stock Power Daily: |
Privacy Policy
The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482.
To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: https://moneyandmarkets.com/contact-us/
Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication.
(c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471)
Remove your email from this list: Click here to Unsubscribe | | | 
Post a Comment
Post a Comment