Posted June 02, 2021
By Jonathan Rodriguez
MUST READ - Is Ford Motor’s Stock a Smash Hit or "Trash It?"
It's J-Rod here and welcome back to Stocks that Rock!
Each week, I turn up the volume on a breakout stock that will make your retirement account sing.
In last week's video, I asked you for a stock to review for today's "Smash Hit or Trash It" edition of Stocks that Rock.
And I got a lot more feedback than I was expecting! Thank you very much.
After I tallied the stock votes... Ford Motor Co. (F) emerged as the winner.
So today I answer the burning question...
Is Ford a smash hit or a "trash it?”
Meaning, put simply… is this stock worthy of a spot in your retirement account?
Without further ado, let's put the pedal to the metal.
You know Ford Motor Co. as one of the world's oldest automakers. And its iconic F-150 truck has been the best-selling vehicle in America for 39 straight years.
But the ride hasn’t been so smooth for Ford over the last decade.
Rising production costs and supply chain issues have eaten into the car company's profits.
And facing fierce competition from Tesla and other electric automakers, the company has seen three different CEOs in the captain's chair over the last seven years.
So what do I think? Right now, I love Ford!
It spent the last three years beefing up its electric vehicle production, unveiling the new all-electric F-150 to rave reviews earlier this year.
It also took a large, undisclosed pre-IPO stake in the upstart electric carmaker Rivian in 2020.
Rivian should go public this year with a valuation of at least $70 billion — making Ford’s stake in Rivian even more valuable than even Ford itself!
In other words, if you buy Ford now... you're not only buying into a major turnaround...
You're getting pre-IPO access to an exciting EV automaker for free! And the market loves Ford’s fierce turnaround.
The stock is up 74% year-to-date. And shares have gained 155% over the last 12 months.
As you can see, this joyride is just getting started...
Ford shares broke out big last week on the news of its aggressive EV plans.
I think this stock is headed for $16 in the short term, adding the stock's recent $2.50 trading range to the breakout point at $13.50.
That's a potential gain of nearly 10%.
And over the longer term, these high-flying shares are going to make a run at $18 to re-test the stock's 10-year highs.
Now the stock could knock around a little bit as the auto industry's semiconductor chip shortage gets resolved.
But on Ford’s long-term momentum… My verdict on the stock is: SMASH HIT!
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Thanks for watching today's edition of Stocks That Rock.
For Rich Retirement TV, I'm J-Rod. And I'll see you next week!
On the hunt,
Senior Analyst, Rich Retirement Letter