A lot of investors have a tough time with auto stocks. But here’s a tip: One thing I’ve learned after years of watching automakers is that a strong positive change in product direction is often followed by increases in both sales and profitability. When that happens, the stock price usually follows.
What does that mean? Think about how Ford Motor Company‘s (NYSE: F) products changed from 2005, before CEO Alan Mulally joined the company, to about 2014, when Ford’s Mulally-driven product revival was more or less complete.