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Barron’s issued a positive commentary on Ford Motor (NYSE:F) in its latest edition, noting that despite a sharp underperformance this year, the Dearborn, Michigan-based automaker is ready to close the gap with its Detroit rival General Motors (NYSE:GM).
Ford (F) has gained only ~7% YTD, while GM (GM) has rallied over 29% compared to the ~17% rise in the S&P 500 (SPY).
“Underperformance by one of America’s two largest automakers relative to the other doesn’t happen very often,” Barron’s wrote, adding that the duo is not highly dissimilar in financials, but investors have yet to recognize that.
However, for one underperformer to close the gap, “there just needs to be a catalyst,” the publication said, arguing that capital discipline would be the key to that transformation.
Anticipated special dividends worth up to $2.60 a share, less spending on EVs, an increased focus on quality, and,…
