Last week, Ford F reported strong second-quarter 2026 results, with adjusted earnings of $3.57 per share rising 41.3% year over year as well as exceeding the Zacks Consensus Estimate by 14.06%. Backed by robust results and improving fundamentals, the company lifted its full-year outlook. Ford raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. It also increased adjusted free cash flow guidance to $6-$7 billion from $5-$6 billion.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote
Wall Street analysts are getting optimistic on the stock after second-quarter results, as reflected by the upward revision of the company’s EPS estimates.
Over the past seven days, the consensus mark for Ford’s 2026 EPS has moved up 24 cents to $1.86, implying a year-over-year jump of 71%. Over the same timeframe, the Zacks Consensus Estimate for 2027 EPS has increased by 17 cents to $1.94, implying growth of more than 4% from projected 2026 levels.
Let’s take a closer look at what has analysts feeling upbeat about the stock and whether it’s the right time to buy.
Ford Blue Benefiting From Better Mix & Cost Cuts
Ford Blue’s prospects are improving as the business shifts toward higher-margin trucks, utilities, off-road models and hybrids. Off-road trims represented nearly 25% of U.S. sales, and Explorer and Expedition retail sales rose more than 20%. F-Series demand remains firm, with disciplined incentives and favorable channel mix supporting pricing.
Management raised 2026 Ford Blue EBIT guidance to $5-$5.5 billion from $4.5-$5 billion. Continued quality gains, lower warranty costs and upcoming truck launches should further support margins. The company remains on track for $1 billion of material and warranty cost reductions in 2026.
Ford Model e Losses Narrowing
Ford Model e’s prospects are improving because losses are narrowing while the company redirects spending toward lower-cost electric vehicles and energy storage. The segment’s second-quarter 2026 EBIT loss narrowed to $919 million from $1.33 billion a year earlier, marking the third consecutive quarter of year-over-year improvement.
Management expects Gen-1 EV EBIT to improve about 40% in 2026 and now forecasts a full-year loss of roughly $4 billion. The Universal Electric Vehicle platform is designed for affordable models priced at around $30,000, with first deliveries expected in 2027.
Ford Pro Winning From Software Strength
Commercial vehicle leadership, recurring software revenues and added production capacity are set to boost the segment’s profits. Ford now expects an EBIT of $7-$7.5 billion for the full year from this unit, up from $6.5-$7.5 billion guided earlier.
Paid Ford Pro Intelligence subscriptions exceeded 900,000, supporting a higher-margin revenue stream. Early 2027 model-year customer contracting is running ahead of last year, indicating sustained fleet demand. Oakville is scheduled to add up to 100,000 units of Super Duty capacity from the fourth quarter of 2026, supporting volume recovery, service growth and earnings resilience.
Ford Energy Offers Diversification
Ford Energy adds a new revenue stream beyond vehicle sales by applying Ford’s battery manufacturing, service and monitoring capabilities to energy storage. The company expects to reach 20 gigawatt-hours of annual capacity by late 2027 and is already producing prototype cells in Michigan.
Solid Liquidity & Dividend Yield Add to the Appeal
Ford ended the second quarter of 2026 with $22.3 billion in cash and $43.4 billion in liquidity. It has returned more than $16 billion through dividends and repurchases over five years. The company has an attractive dividend yield of over 4%.
Ford’s Price Performance & Valuation
Year to date, shares of F have risen 12.5%, outperforming the industry and peers like General Motors GM and Tesla TSLA. While General Motors shares moved up roughly 8%, Tesla shares declined 28% during the same timeframe.
YTD Price Performance Comparison
Image Source: Zacks Investment Research
Ford also appears undervalued now, with a Value Score of A. The company is trading at a forward sales multiple of 0.32, lower than its closest peer, General Motors. Tesla, meanwhile, continues to trade at a significantly higher valuation, reflecting investor expectations for its AI and autonomous driving businesses rather than its core automotive operations.
F’s P/S F12M Vs. TSLA & GM
Image Source: Zacks Investment Research
Buy Ford Stock at Current Levels?
Well, Ford faces volatile input and trade costs. Management expects 2026 commodity costs to be above $2 billion. While Model e losses are narrowing, Ford still expects a full-year 2026 loss of about $4 billion from the segment. Then there are geopolitical and macro uncertainties that can weigh on the stock.
But improving execution and a broader profit mix outweigh the risks. Ford’s richer product mix, recurring services, affordable electrification plans, energy storage and liquidity strength make us bullish on the stock. Add to that its dividend yield for income investors, discounted valuation and upbeat guidance, and Ford is definitely worth buying at current levels.
The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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This article originally published on Zacks Investment Research (zacks.com).
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