CNBC’s Jim Cramer agreed on Thursday Ford engine with the best chances of holding the biggest rally now through early February.
As athletes and celebrities in CNBC’s annual stock draft Cramer, who is not a participant, said he was helping the traditional automaker to make significant profits.
“When expectations were highest – both yesterday and 10 years ago – Ford was pulverized. Now they are incredibly low, and that makes it easy for management to surprise upwards,” said Cramer.
Ford CEO Jim Farley said Cramer Wednesday He assumes that the effects of the chip shortage will bottom out in the second quarter and that production will pick up again in the second half of the fiscal year.
“If Farley is right that the semiconductor shortage will improve in the second half of the year, Ford should no doubt win the stock draft, and I wouldn’t be surprised if the company can actually make $ 5 a share … next year or later Year after, “said Cramer.
Ford shares rose 9% on Thursday, the day after the company published 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 slated to end on February 11, 2022.
Disclosure: Cramer’s charitable foundation owns shares in Ford.