Ford Motor Company (F 0.86%) investors are cheering after shares climbed 33% in 2025. However, this stellar performance isn't a usual occurrence.
If you'd invested $100 in Ford stock exactly five years ago, here's how much you'd have today.
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Since late January 2021, shares of Ford have generated a total return of 58% (as of Jan. 27). Had you invested $100 in this Detroit automotive stock at that time, you'd be staring at a portfolio balance of $158.
During that same period, the S&P 500 (^GSPC 0.43%) produced a total return of 94%, which is fantastic from a historical perspective. Investors looking for huge gains would have been better off simply owning the index.
NYSE: F
Key Data Points
Ford has been around for a long time. However, this doesn't mean that investors should automatically consider buying the stock.
The business operates in a very mature industry that doesn't register outsized durable growth. What's more, Ford has massive expenses and capital expenditures that keep profit margins and the return on invested capital low. These aren't favorable traits.
Value investors might be interested in the stock because it trades at a forward price-to-earnings ratio of only 9.5. But looking out over the next five years and beyond, it's hard to be optimistic that the stock can beat the market.
