Should You Buy Ford While It's Under $15?

• Ford expects to instrumentality astir a $20 cardinal nonaccomplishment owed to pivoting distant from electrical vehicles.

• The car shaper led the federation successful car recalls successful 2025.

• 10 stocks we similar amended than Ford Motor Company ›

Ford Motors (NYSE: F) shares person risen 35% successful 2025 (as of Dec. 23). However, the banal is yet to scope $15, a terms it hasn't scaled since July 2023.

On Dec. 15, the institution announced it volition instrumentality an estimated $19.5 cardinal deed due to the fact that of the caller repositioning of its full EV program, which includes canceling the highly anticipated F-150 Lightning. This volition straight interaction the manufacturer's net for the foreseeable future, arsenic the institution predicts that the deed volition beryllium reflected successful Q4 FY2025, each of FY2026, and $5.5 cardinal volition transportation implicit into FY2027.

Along with its abrupt EV cancellation, Ford is inactive recovering from its warranty costs crisis, different outgo that cuts straight into earnings. The car shaper has been struggling with a surge of recalls since 2024, which the institution covers arsenic a warranty expense. It reached a tipping constituent successful December 2024, erstwhile the institution appointed a caller caput of prime to effort to assistance mitigate the precocious costs. Ford leads the federation successful car recalls successful 2025, accounting for 35% of full recalls.

Ford paid $2.8 cardinal successful warranty costs successful the archetypal 2 quarters of 2025, with a $300 cardinal year-over-year summation successful full warranty costs successful Q2. While the institution did alteration warranty by $459 cardinal year-over-year successful Q3, that betterment whitethorn beryllium short-lived. On Dec. 19, the National Highway Traffic Safety Administration (NHTSA) announced a callback of astir 273,000 Ford vehicles owed to a parking malfunction that could origin rollaways.

Ford's debased valuation reflects those costs. The banal has a trailing P/E ratio of 11.4 and a guardant P/E of 9.4, 3 times little than the S&P 500 (31.2 arsenic of Dec. 24), signaling that Ford's net volition proceed to flounder adjacent year. With those net pressures remaining unresolved for the foreseeable future, investors should presently steer wide of the stock.

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