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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