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Ford’s strong second-quarter sales knowledge (NYSE: F) and impressive housing functionality bode well for Ford’s second quarter effects and third-quarter forecasts to be released on July 30. In the longer term, Ford’s inventory is expected to be boosted through several factors, adding the theft of millions of Americans from cities to the suburbs and launching two new cars through the U.S. automaker.
The number of cars Ford sold to retail customers in the United States decreased by only 14% year-over-year in the quarter. Retail sales, i.e. customer sales, have a tendency to have margins higher than fleet sales. In addition, the company’s high-margin truck sales fell by 0.4% year-on-year, while sales of SUVs from the automaker, which also have a tendency to generate margins higher than cars, fell by only 22% year-on-year despite the pandemic. Incredibly, sales of the company’s Ford Explorer pickup truck increased 12.4% year-over-year in the quarter, while sales of its F-Series pickup trucks fell by only 2% year-over-year. Finally, Ford reported that its share of the U.S. auto retail market increased by one percentage point to 13.3%.
Meanwhile, in June, sales of existing homes soared 21% month by month in June to May.
The sharp uptick in existing home sales indicates that, despite the new coronavirus pandemic and recession, a high percentage of Americans are willing to make large purchases. Exceptionally low interest rates, as well as relief in coronavirus fears among healthy Americans under the age of 50.
Moreover, as I have pointed out in the past, many of the highest-paid sectors, adding up finance, generation and health, lost little or no stimulus in the pandemic. As a result, many Americans still have the monetary resources to buy new homes and, more importantly, for Ford Stock, new cars. This trend bodes well for Ford’s quarterly effects and its forecast for the third quarter.
Europe and China, where the company also sells vehicles, do not appear to be heavily affected by the pandemic at this stage, probably also according to Ford’s forecasts in the third quarter.
Finally, as I have pointed out in the past, aversion to public transport in the midst of a pandemic is likely to be positive for Ford and Ford’s actions.
While the finishing of the house paints will somewhat offset Ford’s profits from the decline in the popularity of cities, I think the overall position of the automaker is due to recent adjustments in the US. The pandemic, however, anticipates that millions of people will return to paintings in offices after the end of the pandemic.
Finally, two of the long-term Ford cars have wonderful potential. Specifically, many were positive about the new edition of the Ford F-150, while the electric edition of the Ford Mustang can effectively fill a giant and potentially very lucrative niche.
CarandDriver said the F-150’s “high-end models” would “impress in-laws, adding that “we expect some of those half-ton trucks to have a maximum towing capacity of at least 13,000 pounds. A Seeking Alpha columnist wrote that “an early verdict of the 2021 Ford F-150 is incredibly positive,” while “I discovered that the external design is incredibly compelling, necessarily perfect.” He added that “the computer table, the 180 degree folding seats and the -plate generator with significant electrical consumption … will be the main promotion points. »»
Finally, the Ford Mustang Mache E, which will come out this fall, could easily turn into an incredibly popular electric sports car for upper middle-class driving forces. The vehicle uses seven axial engines that would allow it to “operate as a front, rear or all-wheel drive car with a maximum force of 1,400 horsepower”. According to the driving force of the race car that helped design the Mach E, it “rushes like a magnetic roller coaster,” Fox News reported. And, incredibly, you can “recharge in forty-five minutes,” the website said.
Ford’s strong sales knowledge in the second quarter of the U.S. implies that it is most likely to report positive results from the second quarter, while its forecast for the third quarter and its longer-term functionality are expected to be boosted through favorable macroeconomic trends. With a low price-to-earnings ratio of just 6.5 times and some very good new Ford cars on the way, Ford shares are value purchases right now.
Larry Ramer has been researching and writing about American stock for thirteen years. He hired through The Fly and Israel’s largest business newspaper, Globes. Larry began writing articles for InvestorPlace in 2015. Possible countercurrent options include Roku, oil reserves, and Snap. You can succeed in it in StockTwits in @larryramer. At the time of writing, I had no shares in any of the companies mentioned.
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