CNBC's Jim Cramer on Thursday endorsed Ford Motor as having the best odds of staging the biggest rally now through early February.
As athletes and celebrities in CNBC's annual Stock Draft picked recovery favorites earlier Tuesday, Cramer, who is not a participant, said he backs the traditional automaker to make significant gains.
"When the expectations were highest – both yesterday and then 10 years ago – Ford got pulverized. Now they're incredibly low, and that makes it easy for management to surprise to the upside," Cramer said.
Ford CEO Jim Farley told Cramer Wednesday that he expects the chip shortage impact will hit a trough in the second quarter and that production will rebound in the second half of the fiscal year.
"If Farley's right that the semiconductor shortage will ease up in the second half of the year, then Ford should win the (Stock Draft) contest hands down and I wouldn't be surprised if the company can actually earn $5 a share … next year or the year after," Cramer said.
Ford shares tanked 9% on Thursday, one day after the company posted a solid earnings report from the first quarter. The stock closed at $11.26, down 68% from its best closing price of $35 more than two decades ago. The stock last closed above $18 per share in 2011.
The 2021 CNBC Stock Draft is scheduled to end Feb. 11, 2022.
Disclosure: Cramer's charitable trust owns shares of Ford.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
https://ift.tt/3e5s7eE
Business
Bagikan Berita Ini
0 Response to "Cramer backs Ford, undrafted in the CNBC Stock Draft, to outperform recovery favorites - CNBC"
Post a Comment