Ford Stock Lags S&P 500 Over 5-Year Period

Investors would have been better off owning the index than Ford shares since 2021.

Jan. 31, 2026 at 8:55am

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Ford Motor Company's stock has produced a total return of 58% since late January 2021, dramatically underperforming the S&P 500's 94% return over the same period. With muted growth prospects and weak profits, Ford is not seen as a good long-term investment option compared to the broader market.

Why it matters

This performance highlights the challenges facing Ford as an automaker in a mature industry, with high expenses and capital expenditures that limit profitability. Investors looking for strong long-term returns may be better served by diversified index funds rather than betting on individual stocks like Ford.

The details

If an investor had put $100 into Ford stock five years ago, that investment would now be worth $158. However, the same $100 invested in the S&P 500 index would have grown to $194 over that time, a significantly better return. Ford's forward price-to-earnings ratio of 9.5 may attract some value investors, but the company's long-term growth prospects appear muted compared to the broader market.

  • Ford shares have produced a total return of 58% since late January 2021.
  • The S&P 500 generated a total return of 94% during the same period.

The players

Ford Motor Company

An American automaker that has been in business for a long time, but operates in a mature industry with muted growth prospects and weak profit margins.

S&P 500

A stock market index that tracks the performance of the 500 largest U.S. publicly traded companies, and is considered a benchmark for the overall stock market.

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What they’re saying

“Ford has been around for a long time. However, this doesn't mean that investors should automatically consider buying the stock.”

— The Motley Fool (nasdaq.com)

“Value investors might be interested in the stock because it trades at a forward price-to-earnings ratio of only 9.5. But looking out over the next five years and beyond, it's hard to be optimistic that the stock can beat the market.”

— The Motley Fool (nasdaq.com)

The takeaway

This case highlights the challenges facing individual stocks like Ford in keeping pace with the broader market, even for a well-established company. Investors may be better served by diversifying into index funds that provide exposure to the overall market's performance rather than betting on the long-term prospects of a single automaker.