1 Top Stock to Buy Instead of Ford in 2026

• Ford's Pro conception is performing well, and absorption is refocusing its EV efforts.

• However, there's a starring car institution that boasts superb profitability acknowledgment to its beardown marque and proven pricing power.

• Ford’s trailing-10-year full instrumentality importantly lags this luxury car stock’s monster gain.

• 10 stocks we similar amended than Ferrari ›

For investors successful the U.S., Ford Motor Company (NYSE: F) is astir apt a household name, particularly these days. That's due to the fact that its shares person performed extraordinarily well, producing a full instrumentality of 48% successful 2025 (as of Dec. 17). That summation astir triples the show of the S&P 500.

The Detroit carmaker has had a phenomenal year, giving it owed credit. Investors should person nary complaints. However, there's 1 automotive stock you should not hesitate to see buying earlier Ford successful 2026.

This year, Ford has been deed by tariffs, warranty costs, and a supplier mill fire. But investors person go much bullish. The banal started 2025 trading astatine a price-to-earnings (P/E) ratio of 6.8. Today, that aggregate has climbed to 11.5.

The marketplace is apt focusing connected the occurrence of Ford Pro. This conception sells vehicles, software, and services to commercialized clients. It posted double-digit gross maturation and an 11.4% operating borderline successful Q3 (ended Sept. 30). It supports Ford's quality to make predictable and recurring high-margin sales.

Management has besides refocused its strategy with respect to electrical vehicles (EVs). Efforts are being scaled back, with an accent connected hybrids and smaller, much affordable EV models.

It's inactive casual to reason that Ford is simply a subpar business, though. Its semipermanent maturation prospects are weak, profits are low, capital expenditures are significant, and request is cyclical.

A overmuch amended concern that investors should look astatine is Ferrari (NYSE: RACE). The 1 sound investors whitethorn person is that the valuation is ne'er truly cheap. Ferrari's banal terms is down 29% from its peak, pressured by a softer-than-expected long-term outlook provided by executives successful October, but it inactive trades astatine a affluent P/E ratio of 37.

That valuation tin beryllium justified. Ferrari is an outstanding institution that is thing similar its peers. It has an incredibly almighty marque that commands pricing power, supported by intentionally constricted measurement prediction. Ferrari caters to the ultra-wealthy, a radical that is recession-resilient, starring to durable demand.