Day Movers

Going Through the Chart for Ford Motor Company (F)

Most of the investors recently have been curious over the performance of Ford Motor Company (NYSE:F) stock. At the end of the day, it’s only a stock’s performance that matters. With this in mind, it’s worth taking a look at the chart to get a sense of where it might be headed in the future.

How has the stock performed recently?

Ford Motor Company (NYSE:F) has been trading in a bearish manner, based on the relative positions of the stock’s 20 and 200 day moving averages. In the last month, the price of F has decreased -19.12%. Shares are now up over the past year, outperforming the broad market by -100% and underperformed a peer group of similar companies by -180%. After the latest session, which saw the stock close at a price of $10.70, F sits below its 52-week high.

Momentum indicators

Of course, these surface-level price movements don’t tell us much about the direction that F may be headed in the future. To do this, analysts often study the speed and magnitude of a stock’s price movements with what are known as momentum indicators. The logic is that as a stock’s momentum slows, it may be nearing key support or resistance levels and possibly the end of a current trend. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for F is 35.22%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 11.04%, tells a different story, and suggests that F currently trades in oversold territory.

What do the trading volumes reveal?

Price isn’t the only tool analysts use to forecast future performance. Volume patterns can also reveal some important insights. If, for instance, a stock’s volumes suddenly increase by a significant amount, it’s usually a sign that the level of conviction behind the trade is high. Investors may feel very strongly about the future direction of the stock in question. Ford Motor Company (F) average trading volume of 70,898,063 during the past month is 79.63% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.



What do the analysts think?

F is currently undervalued by -13.15% relative to the average 1-year price target of $12.32 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 3.00, which implies that analysts are generally neutral in their outlook for F over the next year.

How risky is the stock?

When predicting the future performance for a stock, it’s also important to take into account risk. To do this, analysts often use a stock’s beta, which measures the stock’s volatility relative to the overall market.

Ford Motor Company (NYSE:F) has a beta of 1.04, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. F therefore has an above average level of market risk. During the past couple of weeks, F average daily volatility was 40.64%, which is -16.18 percentage points higher than the average volatility over the past 100 days.




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