Ford (NYSE: F) has been a huge disappointment. In the past decade, shares have produced a total return of just 3%. Investors who put money in an index fund tracking the S&P 500, on the other hand, would've grown their capital by an astonishing 235%.
But as this auto stock trades down 28% this year, is it a smart buy right now for long-term investors? Let's consider the bull and bear cases for Ford.
Ford's compelling valuation is one obvious positive to highlight. As of this writing, shares trade at a forward price-to-earnings ratio of only 5.6. In comparison, the S&P 500's multiple is about four times that at 22.5. It's hard not to get excited about a stock that looks so cheap, particularly when the market is near all-time highs.
Source Fool.com