We all know about legacy automaker Ford (F) and its “no boring cars” maxim. While sometimes, it is clear that Ford is avoiding boring, sometimes, it remains a little more utilitarian. One example of this is the Ford Expedition, a massive SUV that sells in surprisingly brisk fashion. New reports note that the Expedition is not only not boring enough for Ford to keep around, but also, it is a big seller. Ford shares gained fractionally in Thursday afternoon’s trading.
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The numbers for Ford’s August sales only recently came out, but one point lurking in the stacks, so to speak, was the Expedition. This three-row SUV features models that start in the $74,000 range, reports note, but are still major sellers. Sufficiently major, in fact, that the Expedition accounts for around 5% of all of August’s sales.
While some may not think much of those numbers, it is abundantly clear that Ford’s profitability has been fueled by SUVs and big trucks, to the perhaps-unwise exclusion of just about everything else. The Expedition’s sales have also been sufficiently brisk that they outpaced Ford’s overall sales. The Expedition was up 53.7%, but Ford’s overall August sales were up around 3.9% reports note.
Ford Racing Takes Over for Ford Performance
Meanwhile, Ford’s ambition to keep up the “no boring cars” streak only continues with a move from Ford Performance to Ford Racing. The rebranding effort is not just rebranding, according to word from Ford Racing General Manager Will Ford, but means a complete change to the operation itself.
Ford noted, “Our new Ford Racing organisation will bring our road and race operations closer than ever before. Under one global leader, our super-talented engineers, designers and aerodynamicists will find innovative solutions for the track and bring them to our road products – and vice versa. All this is being done to bring the best products, technologies, and experiences to our customers.”
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, eight Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 7.89% rally in its share price over the past year, the average F price target of $10.60 per share implies 9.21% downside risk.
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