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These stocks aren’t done falling

Ford (F)

When exactly did Ford go from being part of the nation’s industrial backbone to a sketchy little mid-sized company with inconsistent sales and no real prospects for growth. Wait, what was that last part? No real prospects for growth? I know that may seem a harsh judgement, but consider that Ford’s revenue growth over the last five years has been a paltry 7%—not 7% annually, but 7% total. Most analysts see sales dropping off next year in what might be considered the most favorable possible of circumstances: a massive recent tax cut and strong and growing currency tailwinds. Ford’s trailing P/E is 5.64, making it among the lowest in the industry, but its forward 2018 estimated P/E is higher—6.69, telling us what we might have guessed, that the company is in earnings decline as well as revenue decline. I don’t know about you, but I don’t by moribund companies at any price.

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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.