Despite Ford’s strong auto sales in July, the stock will not move because of the company’s international markets, CNBC’s Jim Cramer said on Monday.
“This is a very difficult situation for people at home because you keep seeing these amazing numbers from Ford and you keep seeing Mark Fields [Ford CEO] do everything right,” Cramer said on CNBC’s “Squawk on the Street.”
Ford Motor Co. reported a 5 percent jump in sales, well above the 2 percent gain expected by analysts, on the strength of its F-Series pickups. Ford’s F-Series sales, of which the F-150 pickup accounts for the lion’s share, showed an increase of 4.8 percent. The F-Series total of 66,288 was more than all sedan sales of 66,004.
Despite the positive news, Ford shares rose only 1 percent to $ 14.98. The company’s stock has been unable to break above the $ 20 range for over a year.
Cramer said that the reason is that Ford is a large international company, dragged down by emerging markets such as China and Latin America.
“You cannot do better than Mark is doing in the United States,” Cramer said. “But he is stuck with Ford being a world company. It’s amazing how big these companies are that it can’t move the needle.”
—Reuters contributed to this report.