The New and Improved F-150 Will Turbocharge Ford

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While stock-market traders are busy obsessing over relatively new automakers, many of them have ignored Ford (NYSE:F). On most days, you won’t hear much heated discussion on television or social media about F stock.

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What people seem to be missing is a major headline story as a very familiar truck model is getting a major upgrade. Indeed, the F-150 isn’t just more powerful, but is also smarter than previous models.

While the trading community is crowing about the latest start-ups, they’re forgetting that the F-150 is still America’s best-selling vehicle. Owning an F-150 is almost an act of patriotism.

Is the release of a substantially revamped F-150, then, an act of sedition? More likely, it’s a sign that Ford is as future-forward as it is intergenerational. So, get ready, America, as your favorite old truck gets a makeover that’s more than skin deep.

A Closer Look at F Stock

It really wasn’t very long ago that $9 was a magnet for F stock. That was during the pre-pandemic days, which now feel like a lifetime ago. Today, the bulls are struggling to push F shares above $6 and keep them there.

This is the new reality that traders must learn to accept. Ford’s leadership position among automotive companies began to deteriorate long before the onset of the novel coronavirus. Thus, we observe a steady decline in the F share price starting in June of 2014, back when the stock trading in the $17 region.

If F stock bulls can at least retake the $9 level this or next year, that in itself would be a victory. This scenario wouldn’t depend entirely on the success of the rebranded F-150, but it could be a pivotal chapter in Ford’s turnaround story.

An Eventful Event

Just how important is the new F-150 to Ford’s continued viability as an American icon? The centrality of this event cannot be understated. For his part, Ford COO Jim Farley went so far as to deem the revamped F-150 “fundamental to the company.”

Farley’s not alone in that assessment. Morningstar David Whiston further underscored the make-or-break monumentality of the F-150 reveal:

“F-150 alone will sell over 600,000 units a year … It’s too big to mess up. Its profits drive everything else going on at Ford … Management took a black eye on credibility last year with problems on the Explorer launch … If they mess up another high-profile launch, it won’t look good.”

It’s a shame that the automaker’s gone from “too big to fail” to “too big to mess up,” but that’s just how elemental the F-150 is and will continue to be. The stakes are high, and Ford has no choice but to swing for the fences with this one. Can the century-old automotive mainstay knock it out of the park?

Not Your Father’s F-150

With just a glance, we can see that the specs on the new F-150 were inconceivable just a decade ago. With 12,000 pounds of available maximum towing capacity, the truck could theoretically haul 43 average-weight NFL linemen (not that this should be tested out, by any means).

In today’s day and age, though, it’s not just about sheer horsepower. The latest F-150 is rife with connectivity as its SYNC 4 platform “can wirelessly connect smartphones without the USB cord for seamless integration of Apple (NASDAQ:AAPL) CarPlay or Android Auto compatibility.”

Moreover, the new F-150 offers enhanced driver-assist features via Co-Pilot360 2.0. Innovations including active drive assist, pre-collision assist, automatic emergency braking and pedestrian detection can help guide F-150 drivers (or non-drivers, as the case may be) across a selection of North American highways.

The Bottom Line for F Stock

A powerful, connected, and feature-packed F-150 might not, by itself, be enough to rescue Ford from obsolescence. Even with that caveat, though, F stockholders can hold their shares with confidence as a brand-new truck could revive a very old company.

As of this writing, David Moadel did not hold a position in any of the aforementioned securities.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/the-new-and-improved-f-150-will-turbocharge-ford-f-stock/.

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