Several experts like the valuation in the auto space, and foresee Ford (NYSE:F) racing to the front of the pack in the coming year.
Fortune: “Ford was chosen for great leadership and being the strongest of the auto companies with bright days ahead. At $11.30, its 52-week range is $8.82 to $13.05. There is also an implied upside of almost 30% here if Ford can reach its consensus price target of $14.67 over the next year. Ford has a market cap of $43 billion and a dividend yield of about 1.8%.”
Kiplinger: “Ford still has room to grow. Despite the firm’s achievements, the stock has dropped 40% since early 2011, and the P/E is 8. The P/E is low because investors apparently don’t believe that Ford can sustain those high profits. I think they’re wrong and believe that Ford deserves a higher valuation.”
Bank of America: The automotive company is expected to see over 15% EPS growth in 2013 and has “high foreign sales and a large amount of pent-up demand” in its corner as well.