Should You Buy Ford While It's Under $15?

Core Viewpoint - Ford Motors has experienced a 35% increase in share price in 2025, but the stock remains below $15, a level it has not reached since July 2023 [1] Financial Impact - Ford announced an estimated $19.5 billion loss due to the repositioning of its EV program, including the cancellation of the F-150 Lightning, which will affect earnings in Q4 FY2025, all of FY2026, and $5.5 billion will carry over into FY2027 [3][8] - The company incurred $2.8 billion in warranty costs in the first two quarters of 2025, with a $300 million year-over-year increase in Q2, although there was a decrease of $459 million year-over-year in Q3 [5] Operational Challenges - Ford is facing a crisis with warranty costs due to a surge in recalls, leading the nation with 35% of total recalls in 2025 [4] - A recent recall of approximately 273,000 vehicles was announced due to a parking malfunction, indicating ongoing operational issues [5] Valuation Metrics - Ford's trailing P/E ratio is 11.4 and forward P/E is 9.4, significantly lower than the S&P 500's 31.2, suggesting continued earnings pressure [6] Investment Considerations - Analysts recommend avoiding investment in Ford at this time, as it was not included in a list of top stock recommendations by The Motley Fool Stock Advisor [7][8]