Ford (F) Puts Up a Solid Q4 Sales Show in U.S. With Milestones

Ford F emerged as the best-selling automaker in fourth-quarter 2021, achieving the half-a-million sales mark. F sold a whopping 508,451 vehicles in the quarter, marking a 26.8% sequential increase.

This sales growth also came against the overall industry decline of roughly 3%. Moreover, Ford grabbed the second spot in electric-vehicle sales for 2021, behind only Tesla TSLA. With a number of premium products, F looks at a rosy year ahead.

With sales totaling 27,140 in 2021, Ford’s breakthrough Mustang Mach-E spearheaded its position as the country’s second bestselling full electric SUV right behind Tesla’s Model Y. This most sought after product promises to be a big hit with customers and dealers alike.

Combined sales from Mustang Mach-E and Mustang totaled 79,554 vehicles in 2021, climbing 30.2% year over year. Ford electrified vehicles segment had its cape flying, with sales achieving new records for December. A total of 12,284 electrified vehicles were sold in December, up 121% yearly.

F began 2022 with 247,000 vehicles in stock, up 22,000 from its November 2021 inventory. December saw Ford raking in 70,000 new vehicle retail orders, up 58,000 vehicles from the year-ago level. As much as 33% of its retail sales were generated from completed customer orders for the month.

Apart from the coveted Mustang Mach-E, Ford has a number of impressive products up its sleeve that steered its performance at a breakneck speed and are poised to carry the momentum ahead.

Ford’s strategy to focus on SUVs and trucks proved to be beneficial.

Ford SUVs finished the year strong with fourth-quarter shares rising 3 percentage points and sales were up 41.4% from the third-quarter reading.

Combined sales from Ford’s new Bronco and Bronco Sport totaled 15,446 SUVs for December. In-transit inventory of Bronco and Bronco Sport is up 14.4% and 124%, respectively. Lincoln’s new Nautilus expanded its retail sales for the year by 11%. Lincoln’s best-selling SUV, the Corsair, moved higher in December with sales jumping 28.4% from the November tally, while Navigator was up 26.3%.

Maverick sales from the all-new Maverick truck came in at 6,030 in December, up 134% compared to November figures. Combined Ford pickups totaled 75,518 in December, with 225,974 sold in the fourth quarter.

The F- Series is named the best-selling truck for the 45th straight year and the best-selling vehicle in America for the 40th year in a row. For December, F-Series sales totaled 62,496 trucks, up 3.4% monthly.

Ford noted that 2021 was a year for securing its foundation in the electrified vehicle segment and it looks to expand aggressively in 2022 by adding the F-150 Lightning and E-Transit to its electric vehicle lineup. It welcomed the new year with a strong customer delivery lineup, which will further enhance its EV share.

Ford’s shares have soared 161.1% over the past year compared with the industry’s 11.9% rise. F’s estimated earnings growth rate for the current year is pegged at 359%.

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Zacks Rank & Key Picks

Currently, Ford carries a Zacks Rank #3 (Hold).

Better-ranked peers in the same space include Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy), and Fox Factory Holdings FOXF, carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the past 60 days.

Goodyear’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. Its shares have also gained 95.5% over a year.

Fox Factory has an expected earnings growth rate of 48.2% for the current year. The Zacks Consensus Estimate for the current year has been revised around 2% upward over the past 60 days.

Fox Factory’s bottom line beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF delivered a trailing four-quarter earnings surprise of roughly 16%, on average. The stock has rallied 38.3% over a year.

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