Ford Shares Fall Over 2% Monday, Underperforming Market

Ford Motor Company shares fell over 2% on Monday, bucking the broader market's upward trend, as investors remained cautious ahead of the automaker's upcoming earnings report.

The Nasdaq rose 1.21%, while the S&P 500 gained 0.46%. Meanwhile, the consumer discretionary sector led the market with a 1.63% advance.

Ford shares reversed course after Friday's gain, which followed Zacks Equity Research naming the automaker a stock with strong value attributes.

Ford Lags Market Rally

Despite the broader sector gaining ground, Ford shares declined, indicating stock-specific selling pressure.

The automaker's shares remain below its key moving averages, reflecting a weaker long-term trend.

Meanwhile, only two of the S&P 500's 11 sectors rose on Monday, highlighting uneven market participation.

See more:

Hot Momentum Stocks

Technical Analysis: Bearish Trend Persists

Ford shares are trading 1.4% below their 20-day simple moving average of $12.32 and 9.5% below their 200-day simple moving average of $13.43.

Its 50-day simple moving average also remains below the 200-day average, further reinforcing the bearish outlook.

However, the MACD indicator has crossed above its signal line, suggesting selling pressure may be easing.

Traders are watching $11.50 as a potential support level and $14.50 as resistance.

Earnings and Analyst Outlook

Ford is scheduled to report quarterly earnings on October 28.

Wall Street expects earnings per share of 41 cents, compared with 45 cents in the year-ago period. Revenue is projected at $46.53 billion, down from $47.19 billion a year earlier.

Analysts maintain a consensus rating of "Hold" with an average price target of $15.62.

JPMorgan recently cut its price target to $16 while maintaining an "Overweight" rating. UBS lowered its target to $15 with a "Buy" rating, while Goldman Sachs reduced its target to $14 with a "Neutral" rating.

Ford Stock Performance

As of the time of writing, Ford shares were down 2.17% on Monday at $12.16.