F Stock: Ford Remained Mixed in Week Ended November 17


In the week ended November 17, 2017, Ford Motor (F) stock settled at $12.01, which was no change from the previous week when it fell 2.8% after starting November on a strong note.

In September 2017, Ford stock rose 8.5%, its highest monthly gain for the last 22 months. The stock continued this positive trend in October and ended the month with a 2.5% rise against 2.2% gains for the S&P 500 benchmark (SPY) (SPX-INDEX).

Solid October sales

In October 2017, Ford’s home market sales witnessed a handsome increase of 6.2% YoY (year-over-year) despite industry-wide dullness. Ford’s October sales gains were mainly driven by a 14.6% YoY rise in its fleet sales along with a 3.5% YoY rise in its retail sales. In addition, the company’s truck sales rose 11.4% YoY during the month.

Similarly, Ford’s 3Q17 adjusted EPS (earnings per share) of $0.43 beat analysts’ estimate of $0.32. Despite weaker third-quarter sales in North America, the company managed to improve its profit margins significantly in the third quarter. In its international markets, Ford’s 3Q17 performance in the Asia-Pacific region improved, while its performance in Europe and the Middle East worsened.

Last year, Ford was the second-largest auto industry player (XLY) in the United States after General Motors (GM) but ahead of Toyota (TM) and Fiat Chrysler (FCAU).

What do technicals say?

After hovering just above a key support level of $12, Ford stock inched up on November 20, 2017, to close at $12.13. With this, it also crossed over the 50-day SMA (simple moving average) of $12.07, suggesting optimism.

The nearest resistance level in the stock is $12.26, followed by a key resistance of $12.45. The stock has tested the $12.45 resistance level twice in the last two months. Any violation of this resistance level could attract fresh buying of the stock.


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