Ford Motor Co. (F): Short Term Capital Gains

Ford Motor Co. was a top stock based on predictive algorithm recommended to I Know First subscribers on November 4th for the 30-day time horizon. Ford had a signal of 34.94 and a predictability of 0.43. In accordance with the algorithm, Ford reported strong short-term capital gains of 13.01%.

Ford was part of the stock forecast that can be found in the “Top 10 Stock Picks” Package.

The full Top 10 Stock Picks forecast includes a daily prediction for a total of 20 stocks with bullish and bearish signals:

• Top ten stocks picks to long
• Top ten stocks picks to short
• S&P 500 forecast

The Ford Motor Co. (commonly referred to as Ford) is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand.

Robust job creation, solid wage growth, holiday season “end of year” showroom deals, a steep drop in oil and gasoline prices, and a surge in November vehicle sales are revving auto stocks. Low interest rates, pent-up demand, the construction sector’s recovery, and rising consumer confidence also play roles. November auto sales jumped to an annualized rate of 17.2 million vehicles from 16.3 million last year, and the auto industry is on track to sell 16.8 million to 17 million vehicles in 2015. If this proves to be accurate, it would be the first time since World War II that sales have grown six straight years.

The increase in Ford’s stock price can be partially attributed to their new F-150 model. The F-150 is by far the top-selling automobile in the U.S., and Ford recently replaced steel in the vehicle’s body with an aluminum alloy. This made the vehicle hundreds of pounds lighter, giving the car up to 20% better fuel economy. Besides the improved gas mileage, the decreased weight also means the truck has better handling, faster acceleration, and more hauling and towing power.

The automotive sector faces its best prospects in years. Recovering global economies and a healthier U.S. job market are fattening wallets, sending enthusiastic consumers to showrooms in droves. Add gasoline prices averaging below $3 per gallon and you have excellent conditions for auto stocks that should persist into 2015 and at least 2016.

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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