The Surprising Growth Story of Ford Pro and the Potential Impact on Stock Buy Recommendation

Sunday, 31 March 2024, 12:45

Ford Pro, the commercial arm of Ford Motor Company (NYSE: F), is emerging as a compelling growth story with impressive financial performance. While Ford Blue remains strong, Ford Pro's rapid revenue growth and healthier margins are capturing investors' attention. With a focus on software subscriptions, mobile repairs, and promising EBIT margin projections, Ford Pro presents an intriguing investment opportunity for those considering Ford's stock. Despite historical stock price challenges, the combination of Ford Pro's growth potential, EV transition strategy, and solid bottom-line story make it a compelling buy at this time.
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The Surprising Growth Story of Ford Pro and the Potential Impact on Stock Buy Recommendation

Overview

Full-size trucks and SUVs are highly valuable to Ford, but there's a new growth story in town. When you think of investing in Ford Motor Company (NYSE: F) and its potential growth stories, it's easy to bring up its dividend or dominance in high-value trucks and SUVs, or maybe even its potential in electric vehicles (EVs).

Comparing the basics

Ironically, considering over a decade ago most commercial sales were considered low margin and a black eye for Detroit automakers, it's Ford Pro's commercial business that's growing faster and with better margins. Ford Blue, the traditional gasoline vehicle business, maintains a healthy EBIT margin, but Ford Pro is surpassing it swiftly, exhibiting impressive revenue growth and EBIT margin expansion.

What's driving Ford Pro?

Ford Pro's growth is fueled by launches of new vehicle franchises, software subscriptions, and mobile repairs. The division's revenue and EBIT are on a sharp incline, with expectations for further margin improvements by 2026.

Is Ford a buy?

As Ford Pro continues to drive profitable growth and Ford's transition to EVs gains momentum, the stock presents a compelling investment case. Despite past stock price challenges, Ford's promising financial performance and future prospects make it an attractive buy for savvy investors.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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