Strong Ford hybrid sales provide a window for investors to buy

Ford reported on Monday that monthly sales of hybrid vehicles continued to surge, the latest sign that the company’s shift away from losses and weak demand for electric vehicles is paying off. Jim Cramer sees a window for investors to take action. Ford shares rose 4% on Monday after releasing a strong February sales report. The automaker’s hybrid vehicle sales rose 31.5% from the same period last year. Sales of electric vehicles increased by 80%. But compared with the same period last year, production was uneven. Its sales of conventional internal combustion engine (ICE) vehicles also increased by 7.5%. Overall, Ford sales grew 10.5% this month. F YTD Mountain Ford stock performance so far this year. Jim Cramer said Monday that hybrids “will be a breakthrough” for Ford. He estimated Ford’s sales will also be strong in March and April as the automaker sells 2023 models ahead of the spring sales season. “I urge people to go long before the price goes to $15,” Jim said. Ford shares were just under $13 on Monday afternoon. Ford’s high-margin hybrids are a major growth center, with sales rising 20% last year. Chief Executive Jim Farley said last month on the automaker’s fourth-quarter earnings call that he expects the segment to grow 40% by 2024. Back in September, Ford announced plans to double F-150 hybrid pickup production to help offset the company’s Model E business with its electric fleet. The slowing popularity of electric vehicles in the United States has forced Ford to implement a series of electric vehicle price cuts to cut production of the all-electric Lightning in half this year. Model e reported a full-year EBIT (earnings before interest and tax) loss of $4.7 billion in 2023. Ford’s Pro commercial fleet business generated earnings before interest and taxes of $7.2 billion last year, more than double the level in 2022. Ford Blue, which includes internal combustion and hybrid vehicles, generated $7.5 billion in EBIT. Ford expects blue to be flat in 2024; Pro revenue to grow to $8 billion to $9 billion; and Model e losses to widen to $5 billion to $5.5 billion. CEO Jim Farley says momentum in the hybrid market isn’t slowing down, and he recently said Ford’s hybrid vehicles are attracting customers who are on the fence about electric vehicles but want improved fuel efficiency. (Jim Cramer’s Charitable Trust is Long F. For a full list of stocks, see here.) As a subscriber to Jim Cramer’s CNBC Investing Club, you’ll Receive trade alerts before Jim Cramer trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation is created or created by any information you receive in connection with the Investment Club. No specific results or profits are guaranteed.

The logo of automaker Ford is photographed in Inwood, New York on February 5, 2024.

Charlie Triballo | AFP | Getty Images

Ford Monthly hybrid sales reported on Monday continued to surge, the latest sign that its shift away from losses and weak demand for electric vehicles is paying off.

Jim Cramer sees a window for investors to take action.

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