Ford Motor Company (F)

[amaintrader]

Sean Williams: It's far from the fastest growing stock in the world, but when it comes to bargains for both value and income investors, I have a hard time finding a more attractive stock than automaker Ford (NYSE:F).

The easiest reason to like Ford is that it's doing a great job of listening to its customers and giving them what they want. We're seeing more technological luxuries in the cabins of its vehicles, and best of all it's not causing the price of its midrange cars to shoot into the stratosphere. We're also seeing a discernible push toward its EcoBoost engines, which provide better fuel efficiency without sacrificing power when needed. And, of course, Ford knows how to hit a variety of price points to appeal to as large a population as possible.

Ford also has the most loyal customer base around, at least according to IHS Automotive which looked at 16.5 million new-vehicle registrations and discovered that Ford owners were the most likely to stay within the brand. Comparatively, rival General Motors is clawing back from more than 30 million recalled vehicles in 2014, and overseas rival Volkswagen dropped a bombshell last month that it's essentially been lying about the emissions rating of its diesel engine vehicles. While no saint, Ford is looking like a trustworthy name in the automotive sector.

Lastly, think about the global opportunity waiting in the wings for Ford. It's eventually pushing for 10% of China's rapidly growing auto market, while also making inroads in India and other emerging markets. Ford's global opportunity is far from saturated.

Thus, with Ford capable of $2 in EPS by as soon as 2017 (current stock price is around $14), trading at a PEG ratio of just 0.4, and yielding in excess of 4%, I'm ready to suggest it's one of the market's best bargains.