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. And yesterday, 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 a right triangle following two buy signals from our internal Collins-Bollinger Reversal (CBR) indicator and a new stochastic buy. The target for Ford is $16 by year-end.
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