100,000 Reasons to Buy Ford Stock Now
Ford Motor Company (F) is giving investors a fresh reason to revisit its electric vehicle (EV) strategy as the automaker prepares to launch the Fathom, an affordable electric pickup aimed squarely at the mass market. Ford reportedly wants to sell more than 100,000 Fathom trucks in its first year, a target that would put the model in rare company. That'd make it the first non-Tesla (TSLA) EV to cross the 100,000-unit mark for a single U.S. model in one year.
The Fathom is expected to start at $30,000, with customer orders opening in early 2027 and production beginning in the first quarter at Ford’s Louisville, Kentucky, plant. Moreover, Ford is building the truck around a new Universal EV platform and a redesigned manufacturing process intended to dramatically lower costs. CEO Jim Farley has described the effort as a potential “Model T moment” for the company.
If Ford can turn an affordable electric truck into a genuine volume product, the Fathom could provide a major catalyst for EV growth. It could also demonstrate that the company’s costly lessons from the F-150 Lightning have translated into a more sustainable strategy. That makes Ford stock worth a closer look as the company approaches this potentially transformative launch.
About Ford Stock
With a market cap of approximately $56.7 billion, Ford Motor Company is a global automotive manufacturer headquartered in Dearborn, Michigan, with operations spanning the design, manufacture, marketing, and servicing of Ford and Lincoln vehicles across major international markets. The company sells a broad range of trucks, SUVs, commercial vehicles, and electric vehicles, while also providing connected services and financing through Ford Credit.
F stock has delivered a positive but volatile performance in 2026, with the stock closing the last session at $14. Shares have gained roughly 7% year-to-date (YTD) and about 22% over the past 52 weeks. However, Ford remains 21% below its 52-week high of $17.78, reached on May 29, 2026.
In the near term, the stock rose a little above 1% over the past five trading days. The latest move has been driven in part by renewed investor confidence in Ford’s core truck business and its broader strategy to improve profitability. On Sept. 2, the stock jumped after Ford’s August sales update showed Super Duty production reached a 20-year high, while F-150 production hit its highest level in two years. This helped offset a 10.3% decline in total U.S. sales and a sharp decline in EV sales.
With the recent rally adding to Ford’s broader gains, investors are increasingly focused on whether the company’s next phase of growth, including its planned Fathom electric truck, can turn improving operating momentum into sustained shareholder returns.
F stock currently trades at a discount to industry peers at 7.88 times forward earnings.
Mixed Financial Results
Ford reported its second-quarter 2026 financial results on July 28. Ford generated $48.3 billion in Q2 revenue, down 4% year-over-year (YoY). The decline reflected lower wholesale volumes, discontinued products, aluminum supply constraints, and the company’s decision to right-size first-generation EV production, partly offset by a favorable vehicle mix. Wholesale units fell 12% YoY to 1.04 million from 1.19 million.
Despite the revenue decline, Ford’s underlying profitability improved. Adjusted EBIT increased to $2.5 billion from $2.1 billion, while the adjusted EBIT margin expanded to 5.2% from 4.3%. Adjusted EPS rose to $0.42 from $0.37, exceeding Wall Street’s consensus.
However, GAAP results were considerably weaker. Ford posted a net loss of $1.3 billion, compared with a $36 million loss in Q2 2025.
Coming to segment performance, Ford Blue revenue increased 1% YoY to $26.1 billion, while EBIT jumped significantly to $1.1 billion from $661 million.
Ford Pro, meanwhile, saw revenue decline 5% to $17.8 billion, while EBIT fell 25.8% to $1.7 billion. Its margin consequently declined to 9.7% from 12.3%, with aluminum-related supply constraints continuing to weigh on the commercial vehicle business.
The biggest weakness remained the Ford Model e. Revenue plunged 56% YoY to $1 billion, as wholesale volumes dropped 53% to 28,000 vehicles. However, the segment’s EBIT loss narrowed to $919 million from $1.3 billion.
Additionally, operating cash flow came in at $4.3 billion, down from $6.3 billion a year earlier, while adjusted free cash flow declined to $2.1 billion from $2.8 billion. Ford ended the quarter with $22.3 billion of cash and $43.4 billion of liquidity, providing substantial financial flexibility.
The strongest takeaway for investors was Ford’s decision to raise its full-year outlook for the second time in 2026. The company now expects adjusted EBIT of $10 billion-$11 billion, up from the previous $8.5 billion-$10.5 billion range, and adjusted free cash flow of $6 billion-$7 billion, versus $5 billion-$6 billion previously. Capital expenditure guidance remained unchanged at $9.5 billion-$10.5 billion.
On the other hand, analysts anticipate EPS to rise 70.6% YoY to $1.86 in fiscal 2026 and again 4.3% to $1.94 in fiscal 2027.
What Do Analysts Expect for F Stock?
Last month, Morgan Stanley maintained its “Hold” rating on F stock while setting a $14 price target, indicating a more cautious stance on Ford’s near-term upside.
Meanwhile, DBS Bank upgraded Ford to “Moderate Buy” from “Hold” on Aug. 11, signaling a more constructive view on the automaker’s outlook.
F stock has a consensus “Moderate Buy” rating overall. Out of 23 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” 13 analysts stay cautious with a “Hold” rating, and two offer a “Strong Sell.”
F’s average analyst price target of $15.25 indicates an upside of 10%, while the Street-high target price of $20 suggests 44% upside ahead.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.