FordFord Motor Co. (NYSE: F) is one of the worlds most beloved automobile manufacturers. It’s also one of the most beleaguered. The company has faced numerous challenges in recent years, from fading popularity, to increased production costs, and the near crash of the American auto market.

Today, Ford is a leaner and more agile company. It is focusing on sustainability, cost reduction, and decreased emissions. In 2020, Ford will release its first fully electric performance utility vehicle, and it is hoping to regain market share that has been lost to companies like Tesla.

Ford new electric vehicle is expected to compete directly with the Tesla Model S. By coming late to market, Ford could avoid many of the cost setbacks and mistakes that other electric manufacturers faced.

Ford annual revenue has gradually increased in the last five years, from $144 billion in 2014, to $160 billion in 2018. The gross profit margin is low at 14.19%, but Ford is addressing this with long term cost-cutting measures. The shift towards more efficient and some fully electric vehicles could make the company more relevant in a changing auto market.

Alternative investors might not like the idea of a gas guzzling brand like Ford featuring in an alternative stock portfolio. However, the potential of electric vehicles makes this stock a compelling option. It also offers a dividend yield of 6.52% at today’s price, which is unheard of in pure-play electric vehicle stocks.

Key Data:

  • 1 Year Price Growth: -2.44%
  • YTD Price Growth: 26%
  • 3 Month Price Growth: -5.64%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.