There’s always some technological revolution going on somewhere. The past decade has seen a number of trends, and those growing trends have been great for investors in the right place.
One of the most interesting trends today is the shift by major automakers from conventional gas-powered cars to hybrids and electric vehicles. While some challenges remain, it’s clear that investors like the trend overall, and rising EV sales tend to prove a boost for share prices.
One company seeing its EV sales grow by leaps and bounds is Ford Motors (F), which just doubled its EV sales for November compared to the prior year… the fifth consecutive month for doing so.
Yet with a down market this year, shares are off 26 percent, even with the major automaker seeing a 10 percent rise in revenues.
Action to take: Shares are inexpensive at under 8 times earnings, especially given the company’s portfolio of brands. Investors may like shares for the long run here, as there’s room to rally back to the old 52-week high of $25, nearly double from here, in the years ahead. Plus, at current prices, Ford yields nearly 4.4 percent.
For traders, a long-term call option could be a big winner here. The January 2024 $20 call last traded for about $0.72. With over a year to play out, a return to the $25 range for shares could lead to triple-digit returns for this long-dated option.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.