After a difficult month of April, investor confidence has improved somewhat. This can be attributed, at least in part, to a season of better than expected results. So far, about 80% of S&P500Listed companies released their first quarter results, and 77% of them posted quarterly EPS higher than expected. Overall, reported earnings came in 7.5% ahead of estimates, well ahead of the 10-year average of 6.7%.
Scott Chronert, US equity strategist at Citigroup, comments on the broader implications: “We are now far enough into the first quarter results period to provide some perspective both on the quarter itself as well as the implications for our Full-year S&P 500 earnings projection. . At a high level, this earnings period further supports our bullish view of S&P 500 fundamentals, even as we confront the Fed and underlying economic conditions… For us, the good news is that the implied growth expectations of the market arrived with the decline of the index, creating a more beatable configuration compared to analysts’ expectations.
“All in all,” Chronert summarized, “the valuations still tell us that strong fundamentals are expected and must be implemented. We remain confident that our full-year S&P 500 EPS estimate of $245 should be achievable, if not conservative.
Citigroup stock analysts turn this large-scale vision into concrete recommendations, highlighting 3 stocks to buy now. These include a call with 77% upside potential, a solid gain on which investors can profit. Using the TipRanks Database, we can also find out what other analysts have in mind for these names. Here’s a closer look.
Ford engine (F)
We’ll start with a Detroit classic, Ford Motor Company. This company, based just outside the Motor City in Dearborn, Michigan, was the first to develop the assembly line method for automobile manufacturing, in 1913, and has been a leader in automobile manufacturing ever since. automobile industry. The company pioneered low-cost mass-produced cars, and its famous Model T, priced at $300 in the late 1920s, was one of the first automobiles to be truly accessible to the general public. Ford is also famous for its muscle cars, particularly the Mustang, and its F-Series light, medium, and heavy-duty pickup trucks are the best-selling in their niche. The company’s F-150 pickup truck is consistently among the best-selling vehicles in the United States.
In recent years, Ford has taken significant steps in the development and production of electric vehicles (EVs), including developing and marketing electric versions of the Mustang and F-150. The company has seen mixed results from this initiative; On the one hand, Ford’s electric vehicle sales increased 129% year-over-year in the April 2024 sales update, while internal combustion vehicle sales declined by 9%, but on the other hand, the company is still losing money on its electric vehicles. . Ford’s electric vehicle unit, Model e, posted a net loss in the first quarter of this year totaling more than $1.3 billion.
The company…
