Nasdaq F Ford

Canada's BlackBerry Ltd beat analysts' estimates for second-quarter revenue on Tuesday, powered by demand for its QNX automotive software from automakers betting on more connected vehicles.

What happened Ford (NYSE: F) shares declined Tuesday after two items of news from the company. The stock dropped as much as nearly 3% and remained down just over 2% as of 2:30 p.m. ET. Ford recently warned its third quarter would be negatively impacted by unexpected supplier cost

Electric vehicle stocks have been on the rise in recent years as the global market for EVs has grown. EV sales are expected to continue to grow in the coming years, and EV stocks could be positioned well to capitalize on this industry’s growth. As a result, we’re seei

In a recent buildup to the 2014 rollover accident that killed the Hill couple from Georgia, Ford Motor F has appealed to a court in the country for a new trial after a jury came out with a verdict against it.In a blow to the automaker last month, jurors delivered their ve

Ford Motor Company (F) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

(RTTNews) - Ford Motor Co. is seeking a new trial in a Georgia court after a jury reached a $1.7 billion verdict in a lawsuit against the automotive major regarding a truck rollover accident, The Wall Street Journal reported.

Typically, when someone needs to buy a new car, the first thing they do is fire up the computer and start shopping online. From there, they can decide on the make, model, options, and whether the price suits their budget. Traditionally, the next step is to make the journey down

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Motley Fool host Chris Hill recently talked with best-selling author Morgan Housel in front of a live audience about topics including:

Recent profit warnings from bellwether companies like Ford Motor Co, may signal more challenges ahead for corporate America, increasing wariness for investors as the stock market deepens its sell-off.

Ford Motor F recently started construction of its historic BlueOval City complex in Tennessee, which is considered the nerve for its future electric vehicles (EVs).Production for advanced batteries for future EVs for Ford and Lincoln EVs, including the F-150 Lightning and

The electric vehicle (EV) revolution is speeding up, with companies leaving no stone unturned to establish a strong foothold in this domain. Legacy automakers are stepping up e-mobility investment and setting ambitious targets to electrify their fleet.

Last week, the European Automobile Manufacturers Association (“ACEA”) released data for commercial vehicle registrations for July and August 2022. The European Union (EU) commercial vehicle market contracted 17.4% year over year in July. In August, registrations fell anot

While we can see the automotive industry slowly change gears from internal combustion engines to electric vehicles (EVs), the switchover may be picking up pace. Half the world's consumers that intend to purchase a car in the next two years say they will choose an EV or hybrid, ac

The NASDAQ 100 Pre-Market Indicator is down -45.24 to 11,266. The total Pre-Market volume is currently 39,235,274 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro QQQ (TQQQ) is -0.2399 at $21.07, with 7,056,696 shares traded.,

Stocks have taken a bumpy ride this year. The S&P 500 was in a free fall for the first six months of 2022, tumbling about 24% from peak to trough on fears that rising interest rates to combat inflation could cause a recession. While falling gasoline prices over the summer pro

Shares of electric vehicle manufacturers NIO (NYSE: NIO), Lucid Group (NASDAQ: LCID), and Rivian Automotive (NASDAQ: RIVN) are down sharply from their 2021 highs -- 58%, 75%, and 81%, respectively. That makes them very attractive when you consider the near certainty that EV sales

Shares of Ford Motor Company (NYSE: F) plunged 12% last Tuesday, after the automaker gave investors a disappointing update on its third-quarter performance. Ford cited continued supply chain problems and greater-than-expected cost inflation for the downbeat outlook.

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Ideally, an investment portfolio should pivot during changing monetary circumstances and underweight cyclical exposure as contractionary monetary policies are deployed. The reason for this is bound to receding spending power and the basic "need versus want" theory. Therefore, I identified the following three cyclical stocks that I'm bearish on during 2022's rising interest rate environment: Ford (NYSE:F), Tesla (NASDAQ:TSLA), and Embraer (NYSE:ERJ)

The U.S. Federal Reserve raised interest rates by another 75 basis points earlier this week in an attempt to curb resilient inflation rates. The Federal Reserve's decision-making process is beyond the control of financial market participants; all that investors can do is adapt accordingly.

Ford

Ford shocked the market with a bombshell earlier this week. The company's stock dipped by more than 10% after it revealed that it lacks adequate inventory to fulfill its operational capacity. According to the statement, Ford's set to deliver 40,000 to 50,000 vehicles in its third quarter, well short of estimates.

Adding to its supply-side woes, Ford is faced with an array of macroeconomic headwinds. For example, global GDP growth is softening, inflation rates remain elevated, and Europe's on the brink of an energy crisis. Cumulatively these factors could stun demand for Ford's vehicles, subsequently softening its top-line earnings.

Furthermore, Ford's key metrics spell trouble. The company's return on invested capital (6.50%) is weak, suggesting it's unable to monetize its working capital effectively. Moreover, Ford's gross profit margin is running at a mere 12.19%, implying its pricing power is on a knife's edge, and any downside price elasticity could add severe pressure to the company's income statement.

Lastly, Ford's likely overvalued on a forward-looking basis. The stock's forward price-to-earnings ratio of 19.4x exceeds its trailing price-earnings ratio by 2.78x, conveying softening earnings-per-share.

Is Ford Stock a Buy, Hold, or Sell?

Turning to Wall Street, Ford earns a Hold consensus rating based on four Buys, nine Holds, and one Sell assigned in the past three months. The average Ford Stock price target of $15.96 implies 31.8% upside potential.

Tesla

Legendary "Big Short" investor, Michael Burry, recently tweeted: "If I am tweeting this, you can bet I am not short it. But I should be." Based on Burry's tweet, he's likely holding off on a Tesla short for portfolio reasons. However, it's safe to say his sentiment towards the stock is as bearish as can be.

Tesla's sublime run since its IPO in 2010 was due to an array of company-specific and idiosyncratic reasons. However, times are changing, and the previously mentioned macroeconomic headwinds will likely affect Tesla in the same vein as Ford.

Even though Tesla is exposed to a hypergrowth industry in electric vehicles, its current stock price resembles previously expected growth; therefore, it's likely priced in. Moreover, few consumers expected the magnitude of today's economic downturn, which means the hypergrowth status of the EV industry could be stunned in the coming quarters.

Tesla's gross profit margin has deteriorated recently, implying that its pricing power has a ceiling. In fact, Tesla's gross margin of 27.1% settles 25.52% lower than the sector median, raising a big red flag. In addition, a price-sales ratio of 13.16x and a price-earnings ratio of 104.09x implies that Tesla is firmly overvalued, providing investors with little to no value for money.

Is Tesla a Good Stock to Buy?

Turning to Wall Street, Tesla earns a Moderate Buy consensus rating based on 18 Buys, six Holds, and five Sells assigned in the past three months. The average TSLA stock price target of $311.97 implies 13.2% upside potential.

Embraer

Embraer is a Brazilian-based jet manufacturer. The company caters to commercial aviation, defense, and executive jets. Executive jets make up approximately 23.5% of Embraer's revenue mix, providing cause for concern. Luxury aircraft sales are highly cyclical, and the highs experienced in 2021 will likely fade as rising interest rates dilute consumers' asset financing abilities.

Cumulatively the company's growth is slowing. Embraer missed its second-quarter revenue target by 9% after seeing both its top-line and net profit margin recede by 10% year-over-year.

Looking ahead, matters might get worse for Embraer as this is clearly a cyclical business. The company's 5-year CAGR (compound annual growth rate) of -0.20% conveys its sales volatility, suggesting that its mean reversion could be severe.

Lastly, Embraer's return on common equity of -0.10% means the company posts poor residual, resulting in sub-par economic returns to shareholders. As such, macroeconomic headwinds and fragile key metrics could coalesce to form further downside for Embraer stock.

What is the Price Target for ERJ Stock?

Turning to Wall Street, Embraer earns a Hold consensus rating based on two Holds. ERJ stock’s average price target of $11.50 implies 19.3% upside potential.

Concluding Thoughts – F, TSLA, and ERJ Stocks Exhibit Excess Risk

Cyclical stocks are set for a decline amid rising interest rates. Ford, Tesla, and Embraer are in the firing line amid concerns regarding key metrics, valuation, and overall sensitivity to the business cycle. Reducing or avoiding exposure to these stocks would improve most portfolios' risk versus return prospects.

Disclosure