Markets

Ford Driving Higher

Ford Motor Company (NYSE: F ) - Analysts are projecting that Ford will strongly outperform the market over the next 6 to 12 months, based on three key factors: earnings strength, relative valuation and recent price movement.

Earnings per share increased from a loss of $3.69 to an estimated $1.52 over the past five quarters, indicating an improving growth rate.

On Oct. 4, Morgan Stanley analysts initiated an "overweight" on the stock with a 2011 earnings target of $1.89 per share.

Technically, Ford has been consolidating within a right triangle since April, with support at its 200-day moving average .

Yesterday, the stock broke from the right triangle following two buy signals from our internal Collins-Bollinger Reversal (CBR) indicator and a new stochastic buy.

This breakout reinforces our target for Ford of $16 by year-end.

Trade of the Day - F Stock Chart
Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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