Shares of Ford Motor Company (NYSE: F) plunged 12% last Tuesday, after the automaker gave investors a disappointing update on its third-quarter performance. Ford cited continued supply chain problems and greater-than-expected cost inflation for the downbeat outlook.

Nevertheless, Ford maintained its bullish full-year guidance. Robust demand should allow the company to pass cost increases through to customers as needed. And with Ford stock trading at a depressed valuation, shareholders have a meaningful margin of safety even if the company has to reduce its medium-term forecasts. As a result, I'm sticking with Ford stock.

With Q3 almost over, Ford says it expects to report an adjusted operating profit between $1.4 billion and $1.7 billion for the period. That would be well below its second-quarter adjusted operating profit of $3.7 billion, and significantly less than what analysts had anticipated.

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Source Fool.com