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When technology power players such as Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Facebook , and others make announcements, or signal even the slightest shift in a business practice, investors clamor to find out exactly what is going on. This eagerness is due in part to the continued weight many investors place on these high growth stocks.
But in a world where investors often focus on stocks like Netflix (NFLX - Free Report) , or the next hot tech IPO, in an effort to find outsized growth potential, companies that present value can be tossed to the wayside. This might make many investors forgot about industry heavyweights and household names that offer great bang for your buck.
One such company, which presents outstanding value right now, might also be one of the most recognizable names in the world.
Ford (F - Free Report) is a stock that investors in search of value should take a long look at, despite changing consumer habits and potentially industry-altering events—such as the electrification of the automotive world.
Now, let’s take a look at some of Ford’s most recent quarterly results, as well as some of the company’s current fundamentals, to help investors determine if they want to drive off with shares of this auto giant.
Fundamentals
Near the end of October, Ford reported strong third-quarter earnings. The company’s revenues jumped from $35.94 billion in the year-ago period to $36.45 billion this year. Ford’s net income skyrocketed over 63% to $1.57 billion. On top of that, the company’s EPS jumped from $0.24 to $0.39.
Ford noted that gains in both Asia Pacific and South America helped company revenues increase. And over the last year, shares of Ford have gained 8.90%, which crushes the “Automotive – Domestic” industry’s 3.49% decline.
All of these are strong signs that Ford might be a solid stock to pick, and we haven’t even touched on the company’s valuation metrics yet.
One of the first big value-based indicators that many investors look to is a company’s price to earnings ratio.
Ford is currently trading at just 6.83x earnings, which marks over a 50% discount compared to its industry’s 13.71 average P/E ratio. This relatively tried and true indicator of value also tops the S&P 500’s average by a wide margin.
Ford’s 0.32 price to sales ratio is also outstanding and comes in well below the “Automotive – Domestic” industry’s 1.03 average. Ford’s P/B ratio of 1.48 also marks a major discount compared to the industry and helps further cement the automotive power’s standing as a great value investment.
Along with these more-traditional valuation metrics, the company’s is currently presenting a respectable dividend yield of 4.85%.
Ford is also currently a Zacks Rank #2 (Buy). This rank is bolstered by the stock’s overall VGM grade of an “A.”
The company’s recent signs of strength have helped its shares jump almost 15% in the last 12 weeks. Yet, the company still sits over 7% below its 52-week high, which should help ease investors worries that Ford won’t be able to move substantially higher.
And lastly, so investors don’t think of Ford as a pure value play, the company rocks a “B” grade for Growth in our Style Scores system. The company’s Q4 earnings are expected to jump over 46%, based on our current Zacks Consensus Estimates. Ford’s revenues are also projected gain over 3% to hit $37.18 billion.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>
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Ford (F) Is A Strong Value Stock
When technology power players such as Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Facebook , and others make announcements, or signal even the slightest shift in a business practice, investors clamor to find out exactly what is going on. This eagerness is due in part to the continued weight many investors place on these high growth stocks.
But in a world where investors often focus on stocks like Netflix (NFLX - Free Report) , or the next hot tech IPO, in an effort to find outsized growth potential, companies that present value can be tossed to the wayside. This might make many investors forgot about industry heavyweights and household names that offer great bang for your buck.
One such company, which presents outstanding value right now, might also be one of the most recognizable names in the world.
Ford (F - Free Report) is a stock that investors in search of value should take a long look at, despite changing consumer habits and potentially industry-altering events—such as the electrification of the automotive world.
Now, let’s take a look at some of Ford’s most recent quarterly results, as well as some of the company’s current fundamentals, to help investors determine if they want to drive off with shares of this auto giant.
Fundamentals
Near the end of October, Ford reported strong third-quarter earnings. The company’s revenues jumped from $35.94 billion in the year-ago period to $36.45 billion this year. Ford’s net income skyrocketed over 63% to $1.57 billion. On top of that, the company’s EPS jumped from $0.24 to $0.39.
Ford noted that gains in both Asia Pacific and South America helped company revenues increase. And over the last year, shares of Ford have gained 8.90%, which crushes the “Automotive – Domestic” industry’s 3.49% decline.
All of these are strong signs that Ford might be a solid stock to pick, and we haven’t even touched on the company’s valuation metrics yet.
Ford Motor Company PE Ratio (TTM)
Ford Motor Company PE Ratio (TTM) | Ford Motor Company Quote
One of the first big value-based indicators that many investors look to is a company’s price to earnings ratio.
Ford is currently trading at just 6.83x earnings, which marks over a 50% discount compared to its industry’s 13.71 average P/E ratio. This relatively tried and true indicator of value also tops the S&P 500’s average by a wide margin.
Ford’s 0.32 price to sales ratio is also outstanding and comes in well below the “Automotive – Domestic” industry’s 1.03 average. Ford’s P/B ratio of 1.48 also marks a major discount compared to the industry and helps further cement the automotive power’s standing as a great value investment.
Along with these more-traditional valuation metrics, the company’s is currently presenting a respectable dividend yield of 4.85%.
Ford is also currently a Zacks Rank #2 (Buy). This rank is bolstered by the stock’s overall VGM grade of an “A.”
The company’s recent signs of strength have helped its shares jump almost 15% in the last 12 weeks. Yet, the company still sits over 7% below its 52-week high, which should help ease investors worries that Ford won’t be able to move substantially higher.
And lastly, so investors don’t think of Ford as a pure value play, the company rocks a “B” grade for Growth in our Style Scores system. The company’s Q4 earnings are expected to jump over 46%, based on our current Zacks Consensus Estimates. Ford’s revenues are also projected gain over 3% to hit $37.18 billion.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>