For Immediate ReleaseChicago, IL – January 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured i
Tesla (NASDAQ: TSLA) had a rough time on the stock market in 2022, and the pressure keeps building. Competitors are getting better, consumers have less money to spend on vehicles, and Elon Musk is distracted by Twitter. In the video below, Travis Hoium and Jon Quast discuss where
Astute students of the market probably know growth stocks have outpaced value stocks for the better part of the past 14 years. Although the overused axiom explains that "past performance is no guarantee of future results," this persistent outperformance certainly bolsters the bul
Ford Motor Company (F) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
It has been nothing short of a roller-coaster ride for the auto industry in 2022. From historically low levels of inventory and record high prices of vehicles to the transformative Climate Bill and e-mobility acceleration, there were stories that made the biggest ripples
When interest rates rise, the cost of capital increases. So it makes sense that investors should demand a reason for putting money into stocks instead of a risk-free asset like a Treasury Bill.
The most difficult year for investors in more than a decade is officially coming to a close. It's a year that's seen all three major U.S. stock indexes -- the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite -- plunge into a bear market.
Baidu Inc and Toyota Motor Corp-backed startup Pony. ai said on Friday they been granted the first licences to test fully autonomous vehicles without safety operators as a backup in Beijing.
Baidu Inc said on Friday it had been granted the first license to test driverless vehicles on roads in Beijing, and would add another 200 robotaxis to its network across China in the coming year.
The U.S. Treasury Department said Thursday that electric vehicles leased by consumers starting Jan. 1 can qualify for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.
The United States will introduce incentives on Jan. 1 for delivery firms and other companies to switch to electric trucks as part of a broad push to get polluting, workhorse vehicles off roads and out of neighborhoods.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Ford Motor Co. (Symbol: F), where a total volume of 253,709 contracts has been traded thus far today, a contract volume which is representative of approximately
Though you probably don't need the reminder, it's been a brutally bad year on Wall Street. All three major U.S. stock indexes fell into respective bear markets, with peak-to-trough declines in excess of 20%. Meanwhile, the bond market is on pace for its worst year in history.
Investors are looking for lucrative value plays and avoiding growth stocks amid rising interest rates and growing macro pressures. The ongoing turmoil has dragged down stocks of many well-established companies with strong fundamentals, creating opportunities for investors to build positions at attractive levels. Using
TipRanks’ Stock Comparison Tool, we will compare Pfizer (
NYSE:PFE
), Ford (
NYSE:F
), and Target (
NYSE:TGT
) to pick the most attractive value stock.
Pfizer (NYSE:PFE) Stock
Healthcare giant Pfizer’s revenue is expected to cross the $100 billion mark this year, thanks to its COVID-19 vaccine Comirnaty (developed in collaboration with BioNTech (
BNTX
)) and its antiviral pill Paxlovid. The company expects $34 billion in revenue this year from Comirnaty and $22 billion from Paxlovid.
Investors are concerned about the waning demand for Pfizer’s COVID-19 vaccine. Moreover, Pfizer expects to lose revenue of about $17 billion between 2025 and 2030 due to the patent expiration of some of its key drugs. Nonetheless, the company is confident about its future prospects. Pfizer expects to launch up to 19 new products over the next 18 months. It projects 15 of these products, which are developed internally, to contribute $20 billion to 2030 sales.
Moreover, the company’s acquisitions are expected to further boost its prospects. Most recently, Pfizer completed its $5.4 billion acquisition of Global Blood Therapeutics, a biopharmaceutical company that develops treatments for sickle cell disease.
Is Pfizer a Buy, Sell, or Hold?
Goldman Sachs analyst
Chris Shibutani upgraded Pfizer to a Buy from Hold and increased the price target to $60 from $47. Shibutani’s upgrade was backed by favorable updates from the company's pipeline. Also, the analyst feels that the potential for the new product launches to outperform expectations can drive "meaningful upside" to Pfizer's base business.
Wall Street’s Moderate Buy consensus rating for Pfizer is based on six Buys and five Holds. The average PFE stock price prediction of $54.60 implies 6.8% upside potential.
Shares have declined 13.4% so far this year.
Ford Motor (NYSE:F) Stock
Higher costs, component shortages due to persistent supply chain issues, and macro pressures have impacted the performance of Ford and other automakers. The company was recently in the news when it increased the price of its F-150 Lightning electric pickup truck yet again, citing rising costs and supply constraints. Investors are worried that significant price hikes might impact affordability and hurt the demand for the popular EV model.
Meanwhile, Ford is focused on becoming one of the leading EV players and is making significant investments to meet its goals. The company aims to achieve an annual production rate of 600,000 EVs by the end of 2023 and 2 million by 2026. As part of this plan, Ford recently accelerated the production of Mustang Mach-E electric SUV, with the aim to reach annual production of 270,000 units.
Is Ford Stock Expected to Rise?
Citigroup analyst
Itay Michaeli slightly lowered the 2023 and 2024 EPS estimates for Ford based on recent data points and Q3 results. Nevertheless, Michaeli’s estimates are still above the Street’s consensus expectations.
While Michaeli is “generally constructive” on Ford’s fundamental story and sees the scope for its multiple to expand, he feels that the near-term risk-reward profile seems balanced in the ongoing macro situation. Consequently, Michaeli reiterated a Hold rating on Ford stock but raised the price target slightly to $14 from $13.
A higher proportion of analysts covering Ford remain bullish about the stock. The Street’s Moderate Buy consensus rating for Ford stock is based on six Buys, three Holds, and one Sell. The average Ford stock price target of $17.30 implies 54.5% upside potential.
Shares have declined 46% year-to-date.
Target (NYSE:TGT) Stock
Target is a general merchandise retailer operating nearly 2,000 stores in the U.S. The company significantly lagged analysts’ Q3 expectations, with adjusted EPS declining 49% year-over-year to $1.54. Higher markdowns, merchandise and freight costs, and increased compensation costs hurt profitability. Revenue grew 3.4% to $26.5 billion and comparable sales were up 2.7% in Q3.
While the company experienced increased sales of beauty and food and beverage categories in Q3, high inflation impacted the spending on discretionary items. Macro challenges affected the company’s Q4 outlook. It expects a low-single-digit decline in comparable sales in the holiday quarter and operating margin rate of around 3%.
Meanwhile, Target aims to deliver cost savings of $2 billion to $3 billion over the next three years to drive operational efficiencies. The retailer is optimistic about its long-term growth, driven by its extensive store network and growing list of partnerships with companies like Starbucks (
SBUX
), Apple (
AAPL
), CVS Health (
CVS
), and Ulta Beauty (
ULTA
).
Is TGT a Buy or Sell?
Earlier this month, Bernstein analyst
Dean Rosenblum initiated coverage of Target with a Buy rating and a price target of $190. Rosenblum is "cautiously bullish" on the U.S. hardlines and broadlines retail sector. The analyst believes that long-term fundamentals “remain sound.” Rosenblum believes that the pullback in the stocks in the sector offers “some potentially compelling entry points.”
Overall, the Street’s Moderate Buy consensus rating for Target stock is based on 15 Buys and 11 Holds. The average TGT stock price target of $176.21 suggests 21.1% upside potential.
Shares have declined 37.1% year-to-date.
Final Thoughts
Near-term headwinds are weighing on the performance of Pfizer, Ford, and Target. Nonetheless, Wall Street analysts seem bullish on the long-term prospects of these value stocks. Currently, they see higher upside potential in Ford stock than in Pfizer and Target. Moreover, Ford offers a higher forward dividend yield of 5.4% (
current dividend yield stands at 4.4%) compared to Pfizer’s 3.2% and Target’s 3.0%. However, Pfizer and Target have a better track record of consistent dividends than Ford.
As per TipRanks, the
Hedge Fund Confidence Signal is Very Positive for Ford. Hedge funds have increased their holdings in Ford stock by 40.4 million shares in the last quarter.
Disclosure
In the latest trading session, Ford Motor Company (F) closed at $11.20, marking a -1.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
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Over the past few years, unmistakable buzz has surrounded autonomous vehicle technology as start-ups and major manufacturers are both battling to be king of a new frontier.