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Is Ford (F) Stock A Good BUY in September 2023?
Ford (NYSE:F) is a solid company to purchase and own. Ford made a business move in the last several years that is paying huge dividends now and for the foreseeable future. Ford Pro is a commercial branch that focuses on selling directly to businesses with large vehicle fleets (such as those in the construction and transportation industries). Any pessimism may be put to rest now that Ford has begun disclosing results from the new spin-off company, which it did at the beginning of the year.
Last quarter, the division brought in $2.4 billion, or over $100 million more than it would have from selling cars at retail. Similarly, Ford’s operating margins have improved as a result of the elimination of vehicle dealerships. In the same period, Ford Pro’s margin reached 15.3 percent, whereas it was just 9 percent for sales via dealers.
Management at Ford Pro is anticipating a meteoric rise in subscription, part, and service recurring revenues as the platform develops.
According to the CEO of Ford Pro, these markets will account for 20% of the company’s sales by 2026, providing reliable income for years to come.
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