Jim Cramer helps Ford to surpass the leisure favorites
CNBC’s Jim Cramer confirmed Thursday that Ford Motor had the best chance of holding the biggest rally by early February.
When athletes and celebrities picked favorites for recreation in CNBC’s annual stock draft on Tuesday, 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.
Jim Farley, Ford CEO, told Cramer on Wednesday that he expects the impact of the chip shortage to bottom out in the second quarter and production to 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) contest, and I wouldn’t be surprised if the company could actually make $ 5 a share … next year or the year after, “said Cramer.
Ford stock was up 9% on Thursday, the day after the company released a solid first-quarter earnings report. 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.
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