One of the more popular stocks on Kapitall is Ford (F), whose company was one of the most-viewed on the site. And rightly so, Ford has so much going for it. As a company that did not take any bailout money from the government, Ford’s multi-year turnaround was led by its chief executive, Alan Mulally. After releasing smaller, fuel-efficient cars and a line-up of Fusion models, sales grew. Its shares have not. Earnings are being weighed down by weakness in Europe. In comparison to other automobile companies, Ford is underperforming GM (GM) and Toyota Motors (TM):
Advertising its Products
Ford shares could perform better over time, but it will take continued efforts in advertising to support sales. Fuel-efficiency without sacrificing innovative, catchy design is an angle that Ford could take to market its line-up of automobiles. Ford recently designed a Ford Transit Connect Wagon that is like a minivan but is not. The wagon gets 30-miles per gallon, making it the most fuel-efficient minivan on the market. It will compete with the Dodge Grand Caravan.
Ford’s Fusion Hybrid is even more efficient. The car gets 47 miles per gallon. In the future, a plug-in hybrid will be available. In its design, the Fusion’s front face is inspired by that of an Aston Martin.
Toyota is arguably the most successful and established in the hybrid automobile market. Despite weak sales in China last month, investors are bullish on Toyota. Ford has its work cut out, but if the company can deliver a marketing messages that showcases its fresh look with fuel efficiency in mind, sales will soar.
Click the links for free tools and data for the companies mentioned in this article:
1. Toyota Motor Corporation (TM, Earnings, Analysts, Financials): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $149.14B, most recent closing price at $86.51.
A related automobile company includes:
4. Honda Motor Co., Ltd. (HMC, Earnings, Analysts, Financials): Engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Market cap at $60.85B, most recent closing price at $33.59.
Written by Chris Lau. Disclosure: Author has a long position in Ford Motor (F).
To interact and discuss these picks or picks of your own with users, attach your watch list or portfolio in a message to your friends on Kapitall. To connect with users on the leaderboard: from your tool bar, select Get Connected -> Top Kaptallists.
Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed at the Kapitall store.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)