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Is Ford Motor Company (F) the Most Undervalued Stock to Invest in for Under $20?
We recently published a list of 12 Most Undervalued Stocks to Invest in for Under $20. In this article, we are going to take a look at where Ford Motor Company (NYSE:F) stands against other most undervalued stocks to invest in for under $20.
As we know, nearly all sectors in the S&P 500 index saw gains in 2024, a year dominated by AI enthusiasm and a strong US economy. According to FactSet, the S&P 500 is anticipated to report earnings growth of 11.7% for Q4 2024, marking the highest YoY growth rate reported by the index since Q4 2021. According to an update (as of January 17), the Q4 2024 earnings season for the S&P 500 has seen a strong start. FactSet added that both, the percentage of S&P 500 companies publishing positive earnings surprises and the magnitude of earnings surprises, appear to be above recent averages.
As per Morningstar, the growth drivers identified last year that supported the broader market in 2024 are now receding. The rate of monetary policy easing has been slowing, inflation has been sticky, long-term rates are increasing and the broader US economy continues to slow. Amidst these uncertainties, what lies ahead?
Goldman Sachs’ investment strategy group anticipates the S&P 500 to end between 6,200-6,300 by year-end, demonstrating a total return of ~7% – 8%. The companies’ earnings growth is expected to be the critical driver of the S&P 500’s 2025 return, and Goldman forecasts that the index’s EPS will increase by ~10% to $265 this year. When this earnings growth gets combined with a 1.3% dividend yield and some sort of compression in the P/E ratio, the firm’s base case this year demonstrates high-single-digit total returns and the S&P 500 target range of 6,200 – 6,300.
As per Goldman Sachs, the US stocks have faced pressures as of now in January, due to factors including higher Treasury bond yields, after strong performance in 2024 pushed S&P 500 index at elevated valuations. As per the group, the yield on the 10-Y treasury note is expected to conclude the year lower compared to the current level. The firm recommends to remain invested in the US stock market, even though the broader market is historically expensive.
As per Goldman, the US stock market often delivers gains when there are economic expansions. The investment strategy group of the bank has placed 80% odds on the fact that the US economy will continue to expand in the current year. While the elevated valuation can expose the market to downside risks, the investment firm believes that the US equities will outperform intermediate-duration U.S. bonds and cash considering its economic growth forecast of 2.3%.
Ford Motor Company (F) has been making headlines recently, with its stock price sitting at under $20 per share. Many investors are starting to wonder if Ford is the most undervalued stock to invest in right now.
With the global shift towards electric vehicles and the increasing demand for sustainable transportation options, Ford has been making strategic moves to capitalize on this trend. The company has announced plans to invest billions of dollars in electric and autonomous vehicles, as well as expand its presence in the electric vehicle market.
Additionally, Ford has a strong history of innovation and a loyal customer base, which could bode well for its future growth prospects. The company also has a solid balance sheet, with manageable debt levels and a healthy cash position.
While there are risks associated with investing in any stock, Ford’s current valuation and growth potential make it an attractive option for investors looking to capitalize on the future of transportation. With its stock price under $20, Ford may be one of the most undervalued stocks to consider investing in right now.
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