Ford Motor Co $7.59

Gain to date: 8.6%

Original entry point: Buy at $6.99, 13 August 2020

Shares in US-listed Ford Motor are nearly back at levels seen before the global market sell-off began in February. Helping to drive the stock in recent sessions was a bullish research note from investment bank Benchmark where analyst Michael Ward upgraded his rating to buy from hold.

The company will report its third quarter earnings on 28 October on a group basis. We already have a good idea about the state of trading as figures have been released for key geographic divisions.

The US arm saw Ford pickup truck sales enjoy their best third quarter in 15 years. Across the division, its retail unit sales were down 2% which is quite resilient given the ongoing pressures on consumer and business spending.

For the European arm, Ford achieved a record share in SUV sales for the third quarter. It said commercial vehicle sales had benefitted from growing societal trends like home deliveries and online shopping. The new Puma model has exceeded sales expectations.

In China, Ford posted its largest year-on-year sales increase since 2016 with third quarter sales up by 25.4%.

SHARES SAYS: We originally said to buy as a recovery trade and confidence that new management would put the
car giant back on track. The results so far are excellent so keep buying the shares.

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