Ford’s Explorer Revamp Sparks Optimism and Stock Gains
Automaker Ford Motor Company (F) has made headlines with the launch of its sixth-generation Explorer, which debuted in 1990 as a successor to the Bronco II. The latest iteration has received positive reviews, leading to a rise in Ford’s stock price during Monday afternoon’s trading.
The original Explorer gained fame through its appearance in the 1993 blockbuster Jurassic Park. While the book called for Toyota Land Cruisers to be featured, the film opted for 1992 Ford Explorer XLTs. For the 2025 model year, the Explorer is set to compete more effectively in the crowded midsize crossover market after undergoing significant updates.
One notable change involves the engine lineup. The V8 option has been eliminated, giving consumers a choice between a V6 or an EcoBoost four-cylinder engine. Buyers can also choose between rear-wheel drive and all-wheel drive. A larger grille and sleeker LED headlights are part of the Explorer’s cosmetic updates.
Could This Signal a Ford Comeback?
Despite concerns about Ford’s market position, analysts believe a rebound may be on the horizon. Recently, Goldman Sachs downgraded several automotive stocks but chose to upgrade Ford.
Ford’s positive momentum is attributed to increased revenues from its software subscriptions and a thriving Ford Pro business. Although Ford is scaling back its electric vehicle initiatives, it’s keeping options open for the future, enabling a more competitive stance in today’s market.
Should You Consider Investing in Ford Stock?
On Wall Street, the consensus for Ford’s stock is a Moderate Buy. This rating stems from five Buy recommendations, nine Holds, and one Sell over the last three months. Following a 2.11% drop in its share price this past year, analysts predict an average price target of $12.82 per share, which suggests a potential upside of 17.67%.
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