Will Ford's winning streak continue?

Ford surprised Wall Street and Main Street in 2009 by rising out of Detroit's ashes, but can the automaker keep its momentum in 2010?

By Louis Navellier Jan 11, 2010 4:40PM

Louis NavellierFord Motor Co. (F) has turned over a new leaf in 2010, starting this year with a heck of a lot more promise than the last. Over the weekend, Ford nabbed the North American Car of the Year honors at the Detroit auto show for its Fusion hybrid -- and quickly followed that up with the Truck of the Year award for its European-styled Transit Connect van. All this on the heels of impressive December sales numbers about a week ago, showing Ford continues to gobble up market share from its bankrupt Detroit counterparts GM and Chrysler.

 

Not bad, considering at this time last year we were talking about the likelihood of bailouts and bankruptcy for the members of the Big 3. But in stark contrast to General Motors and Chrysler, Ford has risen to the occasion and emerged from the recession stronger than ever before.

 

The awards at the Detroit auto show -- as well as the recent resurgence of Ford sales -- are proof that the company's move towards a fuel-efficient fleet is paying off in spades. Ford has always had sleeker and smaller vehicles in its European showrooms, such as the Fiesta and a trimmer version of its Focus brand. It's just that executives were remembering the glory days of SUV and truck sales and had been convinced for years that the automaker could only make a profit selling bigger vehicles. Well, Ford CEO Alan Mulally has clearly had a change of heart over the last several months and made a genuine effort to retool the company's image as a provider of quality cars of every size.

 

The culmination of these efforts isn't just the recent awards in Detroit for the petite Transit Connect van or the gas-sipping Fusion Hybrid that boasts an estimated 41 mpg. Nor is it the recent sales surge as other U.S. automakers struggle, or even the fact that Ford shares have surged a staggering 700% off the March lows.

 

No, the real testament to the company's success is the fact that Ford finally returned to profitability in the third quarter -- topping Wall Street earnings estimates by more than 300%.

 

Ford gets an overall A grade in my Portfolio Grader stock-ranking tool because of this strength, including the highest marks for earnings momentum, earnings revisions and cash flow.

 

It's nice to see Ford winning accolades for its fleet. But all those awards and positive sentiment mean nothing if the company doesn't pull back into the black permanently, and all indications are that Ford is finally making money once more.

 

As first-quarter earnings creep up on us, I expect Ford to continue this trend and add to its current momentum. Don’t call it a comeback yet, but it’s reasonable to expect Ford to not just regain its own leadership position in the auto industry but perhaps even surpass its previous success in the months ahead.

 

(Ford and a few other auto stocks will see huge growth in 2010. Read "Gear Up for Big Profits in These Auto Stocks" for the complete list of top auto stocks to buy now.)

 

At the time of this writing, Louis Navellier owned shares of Ford in personal or client portfolios.

 

Related Articles:

3Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

115
115 rated 1
269
269 rated 2
445
445 rated 3
614
614 rated 4
684
684 rated 5
678
678 rated 6
608
608 rated 7
454
454 rated 8
310
310 rated 9
138
138 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.