The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics across the investing world.
In today's edition, Brendan looks at three reasons to buy Ford. The company is experiencing quite a few tailwinds at home, including pent-up demand that should ensure that car sales continue to improve for the foreseeable future. In addition, Ford is expanding heavily into emerging markets. Late to the game in China, Ford had to watch rival GM gain the market share lead there. But now Ford is fighting back, having invested over $5 billion in the country in hopes of a foothold in the world's largest auto market. Finally, Ford's stock is simply dirt cheap, trading at just six times forward earnings. Throw a 2% dividend on top of that and a recent upgrade to investment grade status, and Brendan thinks you have a very compelling long-term buy in Ford.
With Ford on pace to lose $500-$600 million in Europe this year, many investors may be nervous about investing in companies that are even more internationally focused, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover these picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to click here to get your copy today!
Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.