Chicago, IL – April 15, 2025 – Zacks Equity Research shares Griffon Corporation’s GFF, as the Bull of the Day and , Cars.com’s CARS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — Ford F, General Motors GM and Stellantis STLA.
Here is a synopsis of all five stocks:
Helping to mitigate risk and stabilize financial portfolios or business operations, “diversification” is a key strategy during an economic downturn or market uncertainty, making Griffon Corporation’s stock worthy of consideration.
Amid tariff concerns, Griffon should be able to sustain and even prosper with the diversified holding company having exposure to several sectors as a manufacturer of a wide range of consumer products, from garage doors and shutters to materials for disposable diapers and health care items.
Notably, Griffon’s Zacks Diversified Operations Industry is currently in the top 10% of over 240 Zacks industries, with GFF sporting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day.
Griffon’s diversity has contributed to its resilience and strong profitability with annual earnings expected to increase 11% in fiscal 2025 and projected to soar another 21% in FY26 to $6.90 per share. Furthermore, Griffon’s post-pandemic profitability has been astonishing as FY26 EPS projections would reflect a 325% increase from earnings of $1.62 per share in 2020.
This comes as Griffon’s total sales are slated to dip 1% this year but are forecasted to rebound and rise 3% in FY26 to $2.67 billion. More intriguing is that FY25 and FY26 EPS estimates have continued to trend higher over the last month and are now up 3% and 7% in the last 60 days respectively.
Year to date, Griffon stock has dipped 2% but has skyrocketed more than +270% in the last three years to impressively outperform the broader indexes.
With rising EPS estimates suggesting more short-term upside, it's noteworthy that GFF trades at a very reasonable 12.3X forward earnings multiple. Offering a significant discount to the benchmark S&P 500’s 20.4X, GFF also trades nicely beneath its industry average of 15.7X forward earnings with some of the other notable names in the space being 3M and Honeywell International.
The cherry on top is that GFF offers a respectable 1.02% annual dividend yield with Griffon increasing its dividend seven times in the last five years. Plus, Griffon’s 13% payout ratio suggests there is plenty of room to increase its dividend in the future.
Diversification will be important for investors as the ongoing trade war between the U.S. and other countries could lead to an economic backdrop that causes a mild global recession. Reassuringly, Griffon Corporation can provide this diversity and in addition to its strong buy rating, GFF has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
With higher tariffs on imported vehicles likely to raise the cost of new and used cars, Cars.com’s stock has plummeted more than 30% this year.
Trading near its 52-week low of $9 a share, there could be more downside risk for the Chicago-based online automotive platform, which offers research tools for new and used vehicle listings.
To that point, the lingering supply chain effects of the pandemic combined with higher tariffs have reduced the availability of used cars, with there being fewer trade-ins and off-lease vehicles.
On the surface, Cars.com’s EPS growth may be luring with annual earnings expected to rise 14% this year and projected to increase another 22% in fiscal 2026 to $2.40 per share. However, it’s noteworthy that FY25 and FY26 EPS estimates have declined over 12% and 7% in the last 60 days respectively.
Leading to lower investment sentiment for Cars.com’s stock is that the company has missed earnings expectations for six consecutive quarters with an average EPS surprise of -29.81% in its last four quarterly reports. Notably, Cars.com has missed sales estimates in two of the last four quarters.
Although Cars.com has gained much notoriety since becoming independent and going public in 2017, the company has yet to reach a billion dollars in annual sales.
Historically low inventory levels and higher vehicle prices have weighed on Cars.com’s revenue growth as consumer demand continues to plunge.
Furthermore, Cars.com has faced increased competition in the automotive marketplace from rivals like Carvana, which is expected to bring in over $20 billion in annual sales by FY26.
Increased competition has added to macroeconomic concerns, landing Cars.com stock a Zacks Rank #5 (Strong Sell) and the Bear of the Day. While it may be too soon to call Cars.com's stock a value trap, there appears to be more downside risk ahead and investors may want to be cautious even with CARS trading at just 5.7X forward earnings.
U.S. legacy automaker Ford is having a tough run on the bourses. The stock is down roughly 24% over the past year. Shares closed at $9.33 in the last trading session, close to its 52-week low of $8.44.
Meanwhile, Ford’s closest rival, General Motors, has risen 2.2% in the past year. Italian-American automaker Stellantis, on the other hand, has lost 66% in the same timeframe.
Ford is reeling under persistent losses from its electric vehicle (EV) business, with no clear turnaround in sight. Further, declining ICE (internal combustion engine) business profitability and volumes, along with rising risks from Trump’s tariff policies, are playing spoilsports.
The stock is currently trading below its 50 and 200-day SMA, signaling bearish trend. It has a Momentum Score of C.
From a valuation standpoint, Ford looks cheap at the first glance. However, ongoing headwinds may be weighing on investor sentiment and contributing to the low multiples. Its 12-month forward sales multiple is lower than industry levels. The metric stands at 0.23 for Ford, compared with 0.24 for General Motors and 0.15 for Stellantis.
Ford’s Model e division (focused on EVs) remains under pressure, hit by intense competition, pricing challenges and high development costs tied to next-gen EVs. Losses from the segment widened to $5.07 billion in 2024 from $4.7 billion in 2023. Ford now expects a deeper loss of $5-5.5 billion for the full year.
Meanwhile, its Ford Blue division is also showing signs of weakness. The company projects 2025 EBIT of $3.5-4 billion, down from $5.3 billion in 2024. Lower ICE vehicle sales, an unfavorable product mix and foreign exchange headwinds are expected to weigh on performance.
Trump’s 25% tariffs on imports from Mexico and Canada pose challenges for Ford. CEO Jim Farley has already warned that tariffs would bring “a lot of cost and a lot of chaos” to the U.S. auto industry.
These tariffs are expected to disrupt supply chains, raise raw material costs and ultimately increase vehicle prices — potentially hurting demand, sales and profits. However, the bigger impact may not come from the 25% levy on imported vehicles alone but from an expected additional 25% tariff on imported auto parts next month. While Ford manufactures around 82% of the vehicles it sells in the United States domestically, only about one-third of those cars are made with domestic parts — leaving the company vulnerable to rising component costs.
Importantly, the guidance doesn’t even factor in potential policy shifts under Trump. For the full year, Ford expects adjusted EBIT between $7 billion and $8.5 billion, down from $10.2 billion in 2024. While strength in Ford Pro and Ford Credit may offer some support, it’s unlikely to fully offset rising pressure from Model e, Blue, warranty costs and generous incentives — all of which threaten to drag down margins and free cash flow. Adjusted FCF is projected in the range of $3.5–$4.5 billion, a sharp drop from $6.7 billion in 2023.
First-quarter 2025 results are likely to be particularly weak. Ford expects first-quarter 2025 adjusted EBIT to break even, a sharp drop from $2.7 billion in the first quarter of 2024 and $2.1 billion in the fourth quarter of 2024 due to lower volumes, a 20% production cut and plant launch activities.
Ford’s high dividend yield of more than 6% is quite appealing to income-focused investors, especially when compared to the S&P 500’s average of 1.38%. The company targets a payout ratio of 40-50% of free cash flow, reinforcing its commitment to shareholder returns. However, that payout could come under pressure. Tariffs—especially when extended to auto parts—will raise costs, squeeze margins and hurt profits. Ford may have to reassess its dividend policy if tariff burden persists long.
That said, a near-term cut appears unlikely. Ford’s strong liquidity position provides a cushion, with $28 billion in cash and around $47 billion in total liquidity at the end of 2024. This financial buffer allows the company time to navigate policy uncertainty. Still, investors relying on the dividend should watch for developments, as prolonged earnings pressure could eventually challenge the sustainability of Ford’s generous yield.
The Zacks Consensus Estimate for Ford’s 2025 sales and EPS implies a decline of 5% and 27%, respectively. Discouragingly, its EPS estimates have been southbound in the past 60 days.
Despite low valuation and strong dividend yield, Ford faces too many headwinds to ignore. Widening EV losses, weakening ICE performance and looming tariffs threaten margins and earnings. Its 2025 outlook is already soft and doesn’t even account for tariff policy shifts. While its liquidity cushion may delay drastic actions like a dividend cut, ongoing operational struggles and weak near-term prospects suggest limited upside. Until there is more clarity, investors should avoid Ford and wait for a more stable setup.
Ford stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
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