Will This Beaten-Down Stock Bounce Back? 3 Things to Know

There is no scarcity of beaten-down stocks out there right now. The S&P 500 index has dropped about 25% so far in 2022 through mid-October. One iconic stock that has performed significantly worse is Ford (NYSE: F)

The more than century-old automaker continues to have some very popular models, but investors aren't buying into its plans to succeed in a sector that is transitioning to electric vehicles (EVs). With the stock down about 42% year to date, here are three things for investors to consider to see whether now looks to be a good time to take advantage of the stock's underperformance. 

Unlike some competitors including General Motors, Ford is taking a more holistic approach for its future business. GM says it will convert to a full EV company by 2035. Ford plans to spend $50 billion to grow an electric vehicle division it dubs Model e, but it will also maintain another division for its legacy internal combustion engine (ICE) vehicles as well as a third segment for commercial and government customers. That Ford Pro business will supply both work-ready ICE and electric products. It will report results from each segment separately beginning next year under the Ford+ corporate umbrella. 

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Source Fool.com