Is Ford Pro Unit Doing the Heavy Lifting for the Company's Growth?
U.S. auto giant Ford Motor Company F runs three business segments — Ford Pro, Model e and Ford Blue. On its latest earnings release, Ford Pro clocked $1.3 billion EBIT. Ford Blue reported $96 million EBIT, a slump from the prior-year quarter's $901 million, losing significant momentum. The Model e segment could not break its streak of continuous losses. Thus, Ford Pro has proven to be the only competitive advantage in Ford's stride.
The Ford Pro segment offers products and services to its commercial customers, including small businesses, fleet operators and government agencies. The lineup of customer favourites, such as F-150, Transit Van, Super Duty, Maverick, makes it a strong product-driven segment. Ford also provides additional services like fleet management and financing options to its customers.
Ford Pro currently holds 40% market share in North America and aims to maintain EBIT margins in the mid-teens. The segment has around 675,000 paid software subscriptions, with strong ARPU growth driving incremental revenues. Software services also serve as a countercyclical measure for the segment. Ford Pro plans to emerge as a growth engine by accompanying traditional automotive services with software-defined vehicles and connected services to fleet customers.
The sustainable methods adopted in this segment, while also ensuring capital efficiency, have provided Ford with a firm foundation and improved capabilities. Its remaining segments now plan on following Ford Pro's footsteps to revive operations. As of now, Ford Pro remains a segment of high strategic importance.
The Zacks Rundown for Ford
Some other stocks in the Auto space are Tesla, Inc. TSLA and General Motors Company GM.
Shares of Ford have lost around 2% over the past year against the industry 's growth of 22.9%. Its peers, General Motors and Tesla, have gained 7.7% and 83.3%, respectively, over the same period.
From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.26, below the industry average. It carries a Value Score of A. In comparison to this, General Motors and Tesla trade at 0.28 and 9.48, respectively, with a Value score of A and F.
Image Source: Zacks Investment Research
Take a look at how Ford's EPS estimates have been revised over the past 30 days.
Ford stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
21 minutes ago
- Globe and Mail
Will $5,000 Invested in Amazon Stock Make You $100,000 in a Decade?
Amazon (NASDAQ: AMZN) stock has fallen 3% year to date while the S&P 500 (SNPINDEX: ^GSPC) has advanced 3%. But Wall Street anticipates a stronger performance from the retail giant over the next year. The median target price among 71 analysts is $240 per share, which implies 13% upside from its current share price of $212. Tariffs are a big reason the stock has struggled in 2025, but sentiment appears to be on the upswing since the Trump administration de-escalated trade tensions with China. A recent survey from Charles Schwab shows Amazon was the third most-popular stock among retail investors in May. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Can Amazon turn $5,000 invested today into $100,000 over the next decade? Here are my thoughts. Amazon's strength in e-commerce, advertising, and cloud computing are reasons to own the stock Amazon has a strong position in three growing industries. The company operates the most popular online marketplace worldwide as measured by traffic, and it is the largest online retailer as measured by revenue. Amazon is also the third-largest ad tech company, and Amazon Web Services (AWS) is the largest public cloud. The investment thesis is simple: Amazon's strong position in those industries should drive double-digit sales growth annually through the end of the decade. I say that because those industries are expanding at a double-digit pace. The estimates below come from Grand View Research: Retail e-commerce sales are projected to grow at 11.6% annually through 2030. Ad tech spending is forecast to increase at 14.4% annually through 2030. Cloud computing sales are projected to grow at 20.4% annually through 2030. Additionally, Amazon should become more profitable over time as two tailwinds drive its margins higher. First, the company is building 1,000+ generative artificial intelligence (AI) applications to automate and optimize tasks like coding, customer service, inventory management, and logistics. It's also infusing warehouse robots with generative AI so human workers can instruct them in natural language. Second, digital advertising and cloud computing services earn higher margins than retail. Amazon in the first quarter reported double-digit sales growth in its advertising and cloud segments versus single-digit sales growth in its retail segments. That means the high-margin revenue streams are increasing more quickly, which will lift its total profit margin over time. As a caveat, Amazon could struggle with tariffs in the near term. About one-third of sellers on the marketplace are based in China, and those brands account for a material percentage of advertising revenue. However, to quote portfolio managers at Baron Capital, "The company has repeatedly proven its ability to navigate complex environments and emerge stronger." Wall Street estimates Amazon's earnings will increase at 10% annually through 2026. That makes the current valuation of 35 times earnings look expensive, but I suspect analysts are underestimating the company. Amazon topped the consensus estimate by an average of 21% in the last six quarters. I think that trend will continue due to its strong position in three growing industries. Amazon is a good investment, but the stock is unlikely to turn $5,000 into $100,000 in the next decade Amazon stock must increase 20-fold (1,900%) to turn $5,000 into $100,000 during the next decade. Returns of that magnitude are possible, but they happen infrequently. In fact, only five stocks in the S&P 500 increased at least 20-fold during the last decade as of June 12, 2025. They are listed below: However, I doubt Amazon can generate a 20-fold return in the next decade simply because the company is already worth $2.3 trillion. And multiplying that number by 20 would take its market value to $46 trillion, which is approximately what the entire S&P 500 is worth today. That seems an unlikely outcome. Nevertheless, I think Amazon is a worthwhile long-term investment at its current price. The company has a strong position in three growing industries and a track record for beating Wall Street's earnings estimates. That combination led to Amazon stock outperforming the S&P 500 by 40 percentage points over the last three years, and I expect continued outperformance in the next three years. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Charles Schwab is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Axon Enterprise, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Axon Enterprise, and Nvidia. The Motley Fool recommends Charles Schwab and Fair Isaac and recommends the following options: short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Globe and Mail
39 minutes ago
- Globe and Mail
1 Magnificent High-Yield Stock Down 55% to Buy and Hold Forever
Headline-grabbing news events often push investors into emotional investing decisions. That's exactly what is taking place today with regard to tariffs. The investor reaction to tariffs has pushed industry-leading industrial real estate investment trust (REIT) Prologis (NYSE: PLD) down 35% from its 2022 highs and led to an attractive yield of 3.7%. You can do even better, collecting a 4.7% yield, with this well-positioned industrial REIT that is down 55%. Here's what you need to know. Why are investors downbeat on Prologis? Prologis is an industrial REIT giant, with operations across North America, South America, Europe, and Asia. It owns 5,900 buildings containing 1.3 billion square feet of space. But the key part of the story is where its buildings are located. Prologis has assets in just about every major transportation hub in the world, serving 6,500 customers looking to import and export goods. This is a huge business strength, but right now it is seen as a huge negative. That's because U.S. tariffs have upended international trade norms. That's pushed Prologis' stock price down and its yield up. This is definitely a short-term disruption, but it seems unlikely to become a permanent negative. The world is so interconnected today that the more likely outcome is that trade patterns shift and Prologis' diverse portfolio of assets is still highly valuable. Prologis is, indeed, an attractive dividend investment opportunity today. And yet there's an even more interesting story to be told with Rexford Industrial Realty (NYSE: REXR). Highly focused Rexford is deeply out of favor Like Prologis, Rexford owns industrial assets that are vital to international trade. The most important difference between the two REITs is that Rexford is focused on just one single market, Southern California. It owns 424 properties with 51 million square feet of space in them. The key here is that Southern California is the major gateway for Asian goods entering the U.S. market (and vice versa). That, of course, is the problem, given the high-profile tariff fight between the United States and China. The near-term uncertainty has led investors to abandon Rexford. But, like Prologis, it seems more likely that international trade will adjust to a new normal than stop entirely. That alone makes Rexford's lofty 4.7% dividend yield attractive, but there's more. Southern California is a supply-constrained market. That gives Rexford a strong negotiating position when signing leases. Rexford is also a skilled redeveloper, frequently buying older assets and upgrading them so that they are more modern and desirable. That also helps its ability to raise rents. To be fair, the highly concentrated nature of Rexford's business does make it riskier than more diversified Prologis. But unless you believe international trade is going to stop, Rexford should come out the other side of the current uncertainty in a strong position. The opportunity to buy Rexford Industrial is in the here and now Oftentimes the best opportunities to buy a well-run company arise when Wall Street is overly pessimistic. The key is to figure out if the worry is about something that will linger or something that is likely to be temporary. The upheaval in international trade seems like a temporary issue, given how interconnected the world is today. For more conservative investors that could make Prologis an attractive option, while more aggressive investors will probably prefer higher-yielding Rexford industrial. And if you do buy one of these high-yield industrial REITs you'll probably end up owning it for the long term. Should you invest $1,000 in Prologis right now? Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
an hour ago
- Globe and Mail
Can Nvidia Stock Double in 5 Years?
Nvidia (NASDAQ: NVDA) has delivered extreme wealth for early investors, but it's also rewarded investors who bought shares fairly recently. Although it's been under pressure this year, it's up more than 740% over the past three years. That's far more than double. Buying Nvidia stock today would be a no-brainer for anyone who thinks it can replicate that success. But it wouldn't even have to achieve such a rare feat to be valuable to investors. If it doubles five years from now, it would likely beat the market and be a very valuable addition to almost any portfolio. Let's see if that might be in the cards. Enviable performance Nvidia has had an unbelievable run over the past few years since generative artificial intelligence (AI) became the hottest thing since sliced bread. Tech companies are racing to develop the most competitive AI platform or integrate some aspect of AI into their user interfaces. Companies now offer AI-generated content, images, summaries, and more, and they're using agentic AI to get more stuff done with less human intervention. What's common to all of these applications is that they need powerful chips to make the magic happen. There are two basic parts of bringing generative AI to life. One is training, or the input stage, where large language models (LLM) scan tons of data to build their knowledge base. The other is inference, where the LLMs "infer" what's being asked or prompted to deliver the required output. Nvidia also services other industries with its powerful platform, including gaming, which is what drove higher sales before generative AI heated up. Nvidia has been unstoppable. In the fiscal 2026 first quarter (ended April 27), sales increased 69% over last year. Earnings per share (EPS) were $0.81, including a charge it took for shipments it couldn't send to China because of U.S. policy. Even with the $0.15-per-share impact, Nvidia's EPS were well above last year's figure. Unusual opportunities As LLMs become more stable and effective, they're now going past inference to reasoning, which is a more developed stage of inference that takes a bit longer, but produces better results. Instead of popping out instant answers, LLMs that use reasoning might take a few seconds to "think" and then respond. To keep up with the ever-increasing demands for powerhouse chips, Nvidia continues to develop more powerful technology. The Blackwell model has given way to Blackwell Ultra, and Nvidia is planning on launching new technology, called Rubin, in 2026. "AI inference token generation has surged tenfold in just one year," CEO Jensen Huang said, "and as AI agents become mainstream, the demand for AI computing will accelerate." Clients use these chips to power huge data centers where all of this is taking place, and big AI-using companies like Amazon, Microsoft, and Meta Platforms are building data centers. Nvidia's data center revenue outpaced total revenue in the first quarter, up 73% from last year. Nvidia has the best and most powerful chips, and it has the lead in this market by a wide margin. Estimates put it somewhere between 70% and 95% of the AI chip market, and as the opportunity grows, it's easy to see how much it could benefit Nvidia. Priced to buy Despite its lofty ambitions and premier performance, Nvidia stock isn't very expensive. At the current price, it trades at only 25 of next year's earnings estimates. That gives the stock extra room to increase without becoming unreasonably expensive, making it easier to imagine scenarios where it can double your money. From a sales perspective, it's fairly expensive, trading at 23 times trailing-12-month sales. That's a premium valuation for the growth that it has reported. To imagine doubling your money, you'd have to keep that ratio constant, because it isn't likely to rise. Keeping it constant, Nvidia would have to report a compound annual growth rate of 15% to double over five years. That seems very doable, considering its current performance and future opportunities. And even if it can't sustain such a high price-to-sales ratio, it can probably achieve higher than 15% growth over the next five years, which means it can double even at a lower ratio. All this means Nvidia stock is likely to double over the next five years -- and it's very possible that it could do it even sooner. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
