Time to Buy Ford Stock? Not Until These 2 Things Change.

There are a big of reasons to beryllium drawn to shares of Ford Motor Company (NYSE: F) these days.

Some investors mightiness determine to scoop them up due to the fact that they spot the banal arsenic a worth proposition with a price-to-earnings ratio of lone 11. Others could beryllium lured by Ford's lucrative dividend which yields astir 4.5%, with yearly peculiar dividends sprinkled successful erstwhile currency travel is strong.

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Still different investors mightiness stake connected Ford's spot successful highly profitable full-size trucks, SUVs, and its commercialized Ford Pro concern that generates recurring revenue. And finally, immoderate whitethorn spot semipermanent imaginable done artificial quality and driverless vehicles.

Whatever the reason, Ford investors should besides support an oculus connected 2 challenges that the automaker needs to fix. Here's what they are.

Recalls are simply portion of the concern successful the automotive manufacture and companies are nary alien to spending superior connected warranty and callback costs. Unfortunately for Ford investors, the automaker has grown progressively accustomed to recalls and not lone recorded a important 89 recalls successful 2024 but obliterated that with its recently acceptable grounds of 153 recalls past twelvemonth that spanned astir 13 cardinal vehicles.

These callback developments person been known to rear their disfigured caput during Ford's earning reports, including during the 2nd 4th of 2024 erstwhile Ford's warranty costs spiked $800 cardinal and caused the automaker to miss Wall Street estimates. Further, beyond the nonstop numbers, starring the manufacture successful recalls for galore years has a detrimental interaction connected the company's marque representation and quality to "conquest" customers from a competing marque -- 1 of the astir hard and costly things to bash successful the loyal automotive industry.

While Ford has accrued its efforts connected prime successful caller years aft CEO Jim Farley made it a focus, and astir of the issues are blamed connected overmuch older vehicles successful the planetary fleet, you tin spot the illustration shows it's been a inclination for immoderate time.

After seeing markets successful Europe and China surge up successful electrical conveyance adoption, the U.S. manufacture jumped connected the accidental to hype EVs and the future. Companies touted multibillion-dollar investments successful electrification, artillery development, and infrastructure buildout, but the marketplace didn't summation traction astir arsenic speedy arsenic automakers hoped.