Ford's stock climbs 33% in 2025, but can it outpace the shifting market?
Ford Motor Company has seen its stock rise by 33% in 2025, offering a modest return for long-term investors. An investment of $100 in late January 2021 would now be worth $158, reflecting a 58% gain over four years. Despite this growth, the company still faces challenges in a competitive stock market.
Ford's performance over the past five years has lagged behind broader stock market trends. While the S&P 500 delivered a 94% total return from late January 2021 to January 2025, Ford's gains remained lower. The automaker's stock also trailed behind rivals: Tesla surged by 400-500% in the same period, driven by electric vehicle expansion, while General Motors saw returns of 100-150%.
The company operates in a mature industry with limited growth opportunities. High expenses and capital spending have kept profit margins and returns on invested capital under pressure. Still, Ford's current forward price-to-earnings ratio of 9.5 could appeal to value-focused investors looking for undervalued stocks.
Despite steady gains, Ford's traditional auto business continues to face hurdles. Its stock growth remains slower compared to electric vehicle leaders, highlighting the shifting dynamics in the automotive sector.
Ford's stock has shown gradual appreciation, with a 58% return since 2021 and a 33% jump in 2025. Yet, its performance remains modest next to competitors and the wider stock market. The company's valuation may attract certain investors, but its financial challenges persist in an evolving industry.
