Ford (F, $8.44) and Volkswagen struggle to find a common ground for smooth partnership
Ford and Volkswagen announced in January a plan to team up on development of light commercial vehicles, with a special focus on battery-electric vehicles. The move could help Ford and VW save billions of dollars by sharing R&D efforts.
But now it seems highly unlikely that both companies can find common ground when it comes to battery-electric vehicles. According to company officials, their programs are out of sync, and the timing just doesn’t seem to match.
With the global business environment becoming more challenging every day, auto manufacturers across the globe are continuously looking for partners -- even if they are rivals. These negotiations are aimed addressing current challenges and also developing new technologies, such as electrification and autonomous driving - areas in which Ford and Volkswagen aim to take a lead.
But with both companies taking markedly different strategies with their electrification programs, the successful execution of the partnership remains in doubt.
VW has recently allocated over $50 billion to develop more than 50 pure battery-electric vehicles by 2025 to be sold through the German automaker's dozen passenger car brands, including Porsche and Audi, as well as the flagship Volkswagen marque. But the majority of the products will target everyday consumers, not just millionaires.
Likewise, Ford, itself a proponent of electrification, now plans to introduce its first long-range model in 2020, and then expand its line-up over the next ten years.
F in upward trend: price rose above 50-day moving average on May 26, 2023
F moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend. In of 35 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 73 cases where F's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on F as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for F just turned positive on May 26, 2023. Looking at past instances where F's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
F may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day moving average for F crossed bearishly below the 50-day moving average on April 26, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for F entered a downward trend on May 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.142) is normal, around the industry mean (9.619). P/E Ratio (16.556) is within average values for comparable stocks, (95.958). Projected Growth (PEG Ratio) (0.857) is also within normal values, averaging (5.867). F's Dividend Yield (0.103) is considerably higher than the industry average of (0.041). P/S Ratio (0.294) is also within normal values, averaging (72.200).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. F’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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