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When it comes to U.S. automaker Ford (NYSE:F), you have a stock which, for five years now, has been in a secular decline. Many investors expect this weakness in Ford stock to persist for the foreseeable future, as the auto market continues to shrink with the rise of the sharing economy and as Ford loses share in that market to upstart electric vehicle companies, like Tesla (NASDAQ:TSLA).
But, I actually think the next five years could be really good for Ford. The thesis? It’s pretty simple, and based on four big ideas.
First, electrification is the future of the auto market. Second, Ford will electrify its automobile portfolio at an impressive pace over the next few years. Third, this electrification of the automobile portfolio will push revenues, margins, and profits higher into 2025. Fourth, Ford isn’t priced for any of this growth so as it materializes over the next several years, Ford will rush higher.
Read The Full Article On: Finance