The stock market swoon of the past few months has been tough on the nerves, but it has led to lower valuations for some good, solid companies. You can find some really good deals on stocks under $20 per share. Investors might want to consider these two stocks that have dropped below $20 per share over the past few months, because both are built for the long-term.
1. Ford Motor Company
Ford Motor Company ( F -0.19% ) has been in turnaround mode for the past couple of years after its stock price dipped below $5 per share at the start of the COVID-19 pandemic in 2020. The automaker’s shares topped out at over $25 back in January and have since come back to about $15.
Ford has had its share of problems this year, but they are not unique in an automobile industry dealing with high inflation, interest rate hikes, an ongoing chip shortage, and overall supply constraints. Is the worst of it over? It’s hard to say, as there is so much uncertainty in the economy and geopolitical situation, but analysts expect the stock price to climb back to more than $20 during the next 12 months.
While supply constraints have proven to be a challenge throughout the industry, the good news for Ford is that demand is high. Ford had a record 88,000 orders for vehicles in March, up 33% year over year. The F-Series trucks had most of them, a record 50,000 orders last month. Truck sales and SUV sales were both up significantly in March compared to April as supply improved.
But set aside short-term volatility and trends: Ford is a long-term winner, mainly because of its strength and leadership in electric vehicles (EVs). In 2021, Ford was second only to Tesla in EV sales. That momentum continues as EV sales were up 16.9% in March year over year. In April, Ford’s highly anticipated Ford Lightning truck, an electric version of its best-selling F-150, will come out. That should provide a big sales boost. More than 200,000 Lightning trucks were pre-ordered, and Ford had to increase…
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