Talking Numbers

Why what's good for consumers is good for Ford

Why what's good for consumers is good for Ford

Could good news for consumers be even better news for Ford?

The latest Lundberg Survey shows gasoline prices are near a four-year low. In some places, it costs as low as $2.73 per gallon to fill up a gas tank. And, it could get cheaper: Goldman Sachs has lowered its price target for oil in 2015 to $75 per barrel, from $90 per barrel.

But will cheaper gasoline prices help Ford sell more cars and trucks?

(See: )

Sure, Ford makes an electric Focus model and has 36 miles-per-gallon Fiesta. But its most popular – and most profitable – vehicle is also a big gas guzzler. A 6.2 liter, 8-cylinder version of the F-150 can only go 13 miles per gallon, according to the U.S. Department of Energy. Ford sold more than 557,000 F-series trucks in the first nine months of 2014, based on data compiled by, but that's down 0.4 percent from 2013. Ford is expected to release its latest version of the F-150 in the next few weeks.

Gina Sanchez, founder of Chantico Global, says beyond gasoline prices, Ford offers a compelling value play.

"Ford is a very undervalued company right now," said Sanchez, a CNBC contributor. "It has a very high-quality balance sheet…. We need a catalyst to really unlock this [value]…. It's a much longer-term story than gasoline prices right now."

In fact, as the price of gasoline began falling over the summer, so did Ford's stock price. However, things may change for the car company's stock soon, according to Mark Newton, chief technical analyst at Greywolf Execution Partners.

"We've actually seen a fairly large correction since July, which is exactly the time when a lot of energy commodities peaked out and started to turn lower,"Newton said. "Both have moved in tandem, but I am of the opinion that Ford is going to bottom out in the very near future."

(See: Ford tries to jolt electric cars with big discount)

Newton sees Ford's 24 percent drop over the last three months as creating a potential buying opportunity. The stock is hitting what he sees as a key trend line that began in 2009. "You have had a big pullback and now you're into an area of support which should allow for dips to be bought," he said. "I think the stock goes higher."

With Ford's stock well below its late 1990s highs in the $60 range, Newton sees the stock as building a base of support for the past few years.

"It would simply take a move over $18 to really help the stock really start to accelerate on the upside," he said. "But for now, the stock has pullback meaningfully enough where this is a key level."

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