Ford Stock Drops on Guidance Withdrawal But Presents Buying Opportunity, Says Analyst
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Ford's stock dropped significantly after it withdrew 2023 earnings guidance due to uncertainty from union negotiations. However, author believes market overreacted.
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Ford reported mixed Q3 results, missing revenue and EPS estimates. Losses grew in electric vehicle division.
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Tentative deal with United Auto Workers will raise Ford's labor costs, leading to withdrawn 2023 guidance. But demand remains strong.
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With valuation now much cheaper after drop, Ford is attractive long-term value proposition once electric vehicle losses eventually narrow.
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Upgrading Ford from hold to strong buy due to market overreaction presenting buying opportunity. Author discloses long position.