What's Behind Ford's Nearly 413K Explorer Vehicle Recall?

Ford Motor Company F is recalling 412,774 Explorer SUVs in the United States due to a rear toe link fracture that could lead to a loss of steering control and heighten crash risk.

The recall affects certain 2017–2019 Explorer models. The National Highway Traffic Safety Administration (NHTSA) has recommended that dealers replace the faulty toe links at no cost to owners.

Per the recall report, Ford is aware of two global incidents that may be linked to the issue, in which vehicles struck guardrails or barriers after a toe link failure. No injuries related to the defect have been reported.

In separate news, the company is also recalling an additional 40,655 vehicles in the United States due to battery problems and brake pedal defects that could raise the likelihood of a crash.

Ford issued more than 100 recalls last year, which was the highest among U.S. automakers.

In January, Ford recalled more than 116,000 vehicles, including many built at its Kentucky plants, due to a fire risk linked to faulty engine block heaters. Affected models included Ford Escapes (2013-2019), Ford Focuses (2013-2018) and Lincoln MKCs (2015-2016). F sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recalls By Other Automakers in 2026

In January, Rivian Automotive, Inc. RIVN, a California-based electric vehicle manufacturer, recalled 19,641 R1 vehicles that were previously serviced for a rear suspension issue. Per the NHTSA filing, the prior service may have led to improper reassembly of the rear suspension toe link joint. The recall applies to certain R1 models from the 2022-2025 model years, including 7,031 R1S SUVs and 12,610 R1T pickup trucks. All affected vehicles underwent rear suspension service between April 1, 2022, and March 10, 2025.

General Motors Company GM recently recalled more than 43,000 Chevrolet, GMC and Cadillac vehicles, per the NHTSA. The recall affects these three brands because of a defect in the transmission control valve that could fail and cause the rear wheels to lock, raising the likelihood of a crash.

F’s Price Performance, Valuation and Estimates

Ford has underperformed the Zacks Automotive-Domestic industry in the last six months. Its shares have gained 19.9% compared with the industry’s growth of 22.8%.

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From a valuation perspective, F appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.32, lower than the industry’s 3.34.

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The Zacks Consensus Estimate for F’s 2026 and 2027 EPS has moved down a penny in the past 30 days. The Zacks Consensus Estimate for F’s 2027 EPS has moved down a penny in the past seven days.

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Ford Motor Company (F): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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