2 Stocks That Will Outperform Ford & GM By 2013
Ford is experiencing a drop in ratings due to the continuing weakness in Europe and the fact that demand is lower in South America than the company expected. Analysts have noted that the industry is strong in the United Kingdom and Russia, however the overall industry in Europe has not been doing so then. As investors take note of this, they would likely want to see Ford responding so then to the situation and focusing more on strong markets. Only time will tell whether or not the company will do this, yet the company is not in great shape either way. It has several situations that it must recover from earlier it can do then again.
The end of the bad news either
This is not the end of the bad news either, as Ford will have to deal with decreased sales numbers as so then. General Motors and Ford began the year then, nevertheless their sales have been decreasing over the course of the last three months. This has led analysts to cut the projected sales numbers, so Ford does not look as good as it before did. As more investors become aware of how these projections have been cut, stock prices for General Motors and Ford will likely be decreasing. If the situations in Europe and South America continue to be problematic, this could lead to furthermore decreases hereafter.
With the problematic situation in Europe, investors may not be so excited about the fact that Ford has increased its investment in vehicle and engine production in Romania. It has nevertheless invested more than $836 million in the country, and the Romanian plant will produce the Ford B-MAX and the 1.0 EcoBoost engine. During the company refers to this as a world-class facility, I do not expect investors to get as excited about this. One may hope that Ford's actions will help revitalize the industry in Romania and other parts of Europe, nevertheless this is a time where expansion in Europe is a risky move. I do not expect this to hurt the stock, yet I think the situation in Europe will keep investors from applauding the move from Ford.
General Motors investors must be feeling some frustration too. The stock is nearly its 52 week low and is then below its price from a few months ago. Analysts have recently downgraded the stock and cut its target price by over 10%. The company has slipped over 35% from its 52 week high and investors must be frustrated with the company's inability to grow in spite of the government's bailout. Some estimates conclude that the government has lost $35 billion in its bailout of GM, a staggering number for an idea that was supposed to put American automobiles back on the map.
Company to look out for
Tesla is a company to look out for, as it has recently begun shipping its electric Model S sedan. The Ford Focus Electric, to illustrate, has a battery that rates at 105 MPGe, and this is 16 MPGe higher than the Model S battery. The Model S is heavier than the Focus Electric, after all, and it supposedly performs better than any previous electric vehicles. This is a huge release in the electric vehicle market, and though Ford will continue to put up a fight, Tesla will likely become an furthermore dominant player in this industry. Tesla is down from April, nevertheless had a good month in June and has several analysts positively enthusiastic about its possibilities.
