Investors should be pleased with Ford (F +0.04%) this year. The Detroit automaker's shares have returned an impressive 48% so far in 2025 (as of Dec. 12), including dividends. The S&P 500 comes up short.
Ford has positive momentum as 2026 approaches. Does this mean now is a good time to invest $500 in this auto stock?
Image source: Getty Images.
Ford's track record is disappointing
When putting money to work, many investors have a goal to beat the market over the long term. Unfortunately, Ford fails in this regard.
Over the past decade, which is a long enough time horizon to come to a sound conclusion, the car manufacturer has produced a total return of only 73%. The S&P 500's total return during the same period was 308%. That's a huge gap.
Investors looking for outsize gains are better off avoiding Ford stock.
NYSE: F
Key Data Points
Is Ford a wonderful business?
Over extended periods, great companies generally deliver strong investment returns. Ford's stock's poor performance shows that it's not a high-quality business.
For starters, it's not going to register fast growth in car volumes or revenue. Its profit margins aren't anything to write home about. There are huge capital expenditures needed just to keep pace in the industry. Demand can be very cyclical, depending on economic forces.
The stock might be trading at a bargain valuation, but investors should stay away.
