Ford: A 10% Free Cash Flow Yield And Subdued P/E Make It A Buy


  • Strong travel is expected around the 4th of July holiday, building on bullish auto sales trends, which should benefit automakers in the second half.
  • Ford’s valuation is compelling despite challenges, with optimism expressed in the recent earnings report; the options market prices in a 5% move post-earnings next month.
  • F stock’s free cash flow, dividend yield, and historically low P/E make it a compelling value investment opportunity.
  • I highlight key fundamental and technical risks.

Ford brand logo

Vera Tikhonova

Travelers are set to hit the open road this 4th of July. It’s expected to be a strong travel stretch, building upon bullish auto sales trends so far this year. According to WardsAuto, May US light vehicle sales increased by 0.8% year-over-year (adjusted for

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