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Ford Motor Company (F) Dips More Than Broader Markets: What You Should Know

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Ford Motor Company (F - Free Report) closed at $14.42 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's 0.35% loss on the day.

Heading into today, shares of the company had lost 1.75% over the past month, lagging the Auto-Tires-Trucks sector's gain of 1.25% and the S&P 500's gain of 3.36% in that time.

F will be looking to display strength as it nears its next earnings release. On that day, F is projected to report earnings of -$0.27 per share, which would represent year-over-year growth of 22.86%. Meanwhile, our latest consensus estimate is calling for revenue of $21.99 billion, up 32.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.06 per share and revenue of $125.89 billion. These totals would mark changes of +158.54% and +8.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for F. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.98% higher within the past month. F is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that F has a Forward P/E ratio of 13.85 right now. This represents a discount compared to its industry's average Forward P/E of 15.35.

It is also worth noting that F currently has a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic was holding an average PEG ratio of 1.23 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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