NEW YORK, July 21, 2026 – Shares of Ford Motor Company (NYSE:F) reached the average analyst price target on Tuesday, while its valuation premium over General Motors (NYSE:GM) widened to 40% on a forward price-to-earnings basis. The development places heightened scrutiny on Ford’s upcoming earnings release on July 28.
Ford shares rose 2.1% to $14.29, while GM advanced 4.7% to $79.36 by 3:09 p.m. EDT. Ford’s price-to-earnings ratio based on 2026 estimated earnings stood at 8.6 times, compared to GM’s 6.1 times. The median analyst target for Ford is $14.25, leaving shares about 0.2% above that level. In contrast, GM trades 26% below its median target of $100.00.
The valuation gap comes as GM delivered a strong second quarter. Adjusted EBIT surged 30% to $3.9 billion, with North American margins improving to 8.6% from 6.1% despite a 4% sales decline. GM raised its 2026 profit guidance by $500 million to a range of $14 billion to $16 billion, and reported adjusted earnings of $3.57 per share. CFO Paul Jacobson noted customer resilience, with pricing remaining firm. The average U.S. GM vehicle sold for about $52,000, slightly above the prior year.
Ford enters its report from a weaker sales base. U.S. second-quarter sales fell 10.3% to 549,200 vehicles, mainly due to reduced F-150 inventory. The company projects full-year adjusted EBIT of $8.5 billion to $10.5 billion, with first-quarter adjusted earnings of 66 cents per share. Analysts expect second-quarter earnings of 36 cents per share, and the full-year estimate has risen to $1.67 from $1.51 three months ago.
Ford’s higher earnings multiple does not reflect analyst sentiment. While GM carries an Overweight consensus rating, Ford is rated Hold. The market will focus on whether Ford can demonstrate similar pricing power and margin resilience as GM. Key areas include F-150 production ramp and North American margins. A modest earnings beat may not be enough to drive analyst target upgrades.
Risks remain for Ford. The automaker faces potential headwinds from aluminum supply constraints, tariffs, recalls, and warranty expenses. Its electric vehicle and software division is expected to lose $4 billion to $4.5 billion this year. The company also benefited from an anticipated $1.3 billion tariff refund in the first quarter.
The July 28 earnings call will be a critical test. With shares already at the analyst target, Ford must now prove its execution capabilities rather than simply exceed earnings estimates. Investors will watch for signs of margin improvement and production recovery to justify the current valuation premium over GM.
