The Zacks Analyst Blog Highlights Ford, Nissan and Honda

For Immediate ReleaseChicago, IL – May 22, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ford F, Nissan NSANY and Honda HMC.Here are highlights from Wednesday’s Analyst Blog:Ford's EV Retrenchment Deepens: Buy F Stock or Stay Away?U.S. auto biggie Ford is scaling back its electric vehicle (EV) ambitions once again—this time by opening the doors of its battery plant to a rival. In a move that highlights the growing pressure facing automakers, Ford will allow Japan's Nissan to use part of its underutilized Kentucky battery facility. This factory was originally part of Ford's $7 billion EV investment push in 2021, built in partnership with South Korea's SK On. Today, one plant sits idle, and only a portion of the other is producing batteries. Now that part will make batteries for both Nissan and Ford.Partnering with Nissan will help absorb excess capacity.Nissan incurred a $4.5 billion loss in the last reported quarter and just scrapped plans for a battery plant in Japan. Local U.S. production will help reduce its tariff exposure, which is a strategic move by Nissan.Nissan's peer Honda is also rethinking its EV roadmap. As global demand cools, Honda is slashing its EV and software investment target by nearly a third and pivoting toward hybrids. Honda now plans to launch 13 new hybrid models globally by 2030, while scaling back expectations for fully electric vehicles.These moves underscore the challenges Ford and other automakers are facing as EV demand stalls and costs climb. Ford has suspended its full-year 2025 guidance, citing tariff-related uncertainties. The company incurred a $5.07 billion EV loss in 2024, and we expect another $5 billion at least in red ink this year.At this stage, investors may be wondering if the automaker still has a compelling long-term case. Let's dig into the investment thesis.Headwinds Ford Can't IgnoreFord is navigating through some tough terrain. One of the biggest hurdles is the impact of Trump tariffs, which are expected to cost the company a staggering $2.5 billion. While Ford plans to cushion the blow by offsetting $1 billion through various efficiency and cost-cutting measures, the remaining $1.5 billion hit in 2025 looms large. With potential retaliatory tariffs and ongoing supply chain disruptions, the road ahead remains unpredictable. On a broader scale, tariffs could slash U.S. auto industry sales by around 500,000 units, a drop that would undoubtedly weigh on Ford's own sales and bottom line.The traditional Ford Blue division, which sells gas-powered vehicles, is also showing signs of fatigue. The company anticipates lower sales of internal combustion engine (ICE) vehicles this year compared to 2024 A shift in product mix, combined with foreign exchange headwinds, is expected to further compress profits.At the same time, Ford's ambitious investments in green mobility and autonomous driving technology — while vital for the future — are taking a toll on its short-term financial flexibility. The company is pouring billions into modernization efforts, including digital infrastructure, IT systems and product rollouts. As a result, cash flow pressure remains a near-term concern for investors.Silver Linings in Ford's PlaybookStill, not everything is working against Ford. A standout bright spot is its Ford Pro division, which serves commercial and fleet customers. The segment is showing robust demand, backed by strong demand for its Super Duty truck. The integrated offering across vehicles, software, and physical services is gaining traction and could be a major growth engine in the years ahead. Ford's sharpened focus on software and service-led revenues underpins a powerful long-term shift in its business model.Then there's Ford's strong liquidity cushion. The company exited the first quarter of 2025 with $27 billion in cash and about $45 billion in total liquidity. The company is on track to deliver $1 billion in cost savings this year, excluding the impact of tariffs.Finally, Ford's dividend yield of over 5% offers a compelling case for income-focused investors, especially when compared to the S&P 500's average yield of just over 1%. With a plan to return 40-50% of free cash flow to shareholders, Ford is reinforcing its commitment to delivering consistent returns, even as it reshapes its business for the future.Price Performance, Valuation and Estimates for FShares of Ford have declined around 11% over the past year against the industry's gain of 29%.From a valuation standpoint, Ford trades at a forward price-to-sales ratio of 0.27, below the industry as well as its own 5-year average. F carries a Value Score of A.The Zacks Consensus Estimate for F's 2025 earnings implies a 38% drop year over year. Here's how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.ConclusionFord's latest move to share its battery plant with Nissan underscores the shifting ground beneath the EV market. While near-term headwinds—from tariffs to weakening ICE sales to heavy investment outlays—pose real challenges, Ford's strengths should not be overlooked. Its Ford Pro segment, solid liquidity and generous dividend support the case for long-term stability. Still, the road to transformation is costly and uncertain. With mixed signals across its business, Ford remains a wait-and-watch story for now.Existing investors may want to hold their positions, while potential buyers should wait for clearer signs of progress in margins, EV strategy and cost control.Ford stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                  Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks