Ford Rises 23% in 6 Months: Should You Buy, Sell or Hold the Stock?

Core Insights - Ford Motor Company (F) shares have increased by 23.4% over the past six months, while the Zacks Automotive – Domestic industry has grown by 38.4% [1] - In the first eight months of 2025, Ford's sales reached 1.49 million units, reflecting a year-over-year increase of 6.6%, driven by a 14% rise in electrified vehicle sales [2] - Ford's Model e segment saw revenues more than double to $2.4 billion in Q2, with significant margin improvements attributed to product mix and new model launches [6][7] Sales and Performance - Ford's vehicle lineup, including F-series trucks and various SUV models, is performing well, supported by a strong hybrid strategy [5] - Ford Pro, the commercial fleet solutions unit, has diversified its revenue streams, contributing to 17% of its EBIT, moving closer to a 20% target for next year [8] Challenges and Concerns - Ford anticipates a net tariff impact of $2 billion for 2025, up from a previous estimate of $1.5 billion, with a gross tariff cost forecast raised to $3 billion [10] - The company has issued over 100 recalls in 2025, including a recent recall of 1.45 million vehicles, which is expected to increase warranty and recall expenses, putting pressure on margins [11] Valuation and Estimates - Ford appears undervalued with a forward price/sales ratio of 0.29, significantly lower than the industry average of 2.66 [12] - The Zacks Consensus Estimate for Ford's EPS has seen slight upward adjustments for 2025 and 2026, indicating a positive outlook [13]