- Ford Motor Company (NYSE: F) to suspend operation in the Mexico plant for two days due to material shortage.
- Plug Power, Inc. (NASDAQ: PLUG) stock has been rising since the announcement of a joint venture with South Korea’s SK E&S for battery production.
- Ford (F) gained 5% in the last five days, and Plug (PLUG) grew 2% in the same period.
The stocks of Ford Motor Company (NYSE: F) and hydrogen fuel-cell company Plug Power, Inc. (NASDAQ: PLUG) were gaining traction in intraday trading on Friday.
The F stock traded at US$14.98, up 0.60%, while PLUG stock was up 1.76% to US$26.55 in the premarket session at around 8:30 am ET from their previous closing prices.
So, why did these stocks gain traction on Friday? Let’s explore here.
Ford Motors Company
Ford is a Dearborn, Michigan-based multinational automobile company.
The Ford stock closed at over 5 percent up in Thursday’s session. It was continuing the upward momentum in the premarket session on Friday.
Reuters on Friday reported that Ford plans to suspend operation in its Mexico plant from Oct 11 to Oct 12 due to material shortage. The report cited Hermosillo, Mexico plant’s labor union, as saying. However, Ford has not revealed any such plans yet.
The company has been plagued by a semiconductor shortage recently. But it was not immediately clear whether it was due to semiconductors or any other material shortage that might have led to the latest decision to suspend production temporarily.
The automobile industry has been the worst hit in the global chip supply shortage. Several automobile companies like Toyota also had announced similar plans recently. Ford also had said it would suspend production at its Michigan and Kansas City plants.
General Motors and Volkswagen also had halted operations many times this year.
However, Ford’s overall sales rose by 34.3% last month despite the supply chain constraints. Ford had earlier said that it is receiving huge orders for its EV vehicles.
Ford holds around 14% market in the US and about 7% in Europe.
For the quarter ended June 30, 2021, its revenue and net income were US$26.75 billion and US$561 million, respectively. The EPS diluted was US$0.14 compared to US$0.28 in the June quarter of 2020. Its market cap is US$59.4 billion.
The Ford stock traded in the range of US$16.45 and US$7.20, respectively, in the last 52-weeks. Its P/E ratio is 17.52, and the forward P/E one year is 9.36. Ford’s earnings per share were US$0.85, and its current beta is 1.06.
On Oct 7, the stock closed at US$14.89, up 5.45%, with a trading volume of 96,557,550.
Also Read: Top five value stocks to consider in October
Source - pixabay
Plug Power, Inc.
On Friday, the stock of this hydrogen fuel-cell company rose around 2.2% in premarket.
The Latham, New York-based Plug Power is a leading hydrogen fuel-cell technology company. The stock rallied for no apparent reason on Friday.
The Plug stock has been rising since its announcement on Oct 6 about its joint venture with South Korea’s SK E&S for battery production. The joint venture has been planned to accelerate hydrogen use as a substitute energy source in the Asian markets. The SK Group had invested US$1.6 billion in Plug Power early this year.
For the June quarter of 2021, PLUG’s revenue was US$124.6 million, and net loss was US$99.6 million. The company has a market capitalization of US$14.9 billion. PLUG stock touched a high of US$75.49 and a low of US$13.69 in the last 52 weeks.
On Oct 7, the stock closed at US$26.09, up 6.06%, with a share volume of 15,150,400.
The Ford stock gained 5% in the last five days while rising 14% in one month. On the other hand, Plug grew 2% in the past five days and 3.3% in one month, as of Oct 7. The US stock markets have been volatile in September amid various domestic and global developments. However, investors should evaluate the stocks carefully before investing.