Renowned automobile company Ford Motor (F) recently broke Wall Street’s earnings expectations and reinstated its quarterly dividends. But is it wise to buy the stock now while the semiconductor shortage remains a challenge? Let’s find out.Leading automaker Ford Motor Company (NYSE:F) hit its 52-week high of $17.97 on November 1, 2021, after reporting impressive third-quarter results and increasing its guidance for its full-year 2021 adjusted EBIT to between $10.5 billion and $11.5 billion. In addition, it announced the resumption of a regular stock dividend in the fourth quarter, with a quarterly payout of $0.10 per share.
Ford’s stock has gained 26.8% in price over the past month and 132.2% over the past year to close yesterday’s trading session at $17.95. However, current semiconductor chip and labor shortages, and supply chain disruptions, could impact its production.
Furthermore, F faces stiff competition in the emerging electric vehicle (EV) space, with several new entrants and mega players vying for market share. So, F’s near-term prospects look uncertain.