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Ford Motor Company (F) Hits Fresh High: Is There Still Room to Run?
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Shares of Ford Motor (F - Free Report) have been strong performers lately, with the stock up 19.4% over the past month. The stock hit a new 52-week high of $24.95 in the previous session. Ford Motor has gained 13.9% since the start of the year compared to the 2% move for the Zacks Auto-Tires-Trucks sector and the 2.4% return for the Zacks Automotive - Domestic industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 27, 2021, Ford Motor Company reported EPS of $0.51 versus consensus estimate of $0.28 while it beat the consensus revenue estimate by 4.62%.
For the current fiscal year, Ford Motor Company is expected to post earnings of $1.91 per share on $130.49 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.26 per share on $147.31 billion in revenues. This represents a year-over-year change of 1.9% and 12.89%, respectively.
Valuation Metrics
Ford Motor Company may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ford Motor Company has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 0.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ford Motor Company currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ford Motor Company passes the test. Thus, it seems as though Ford Motor Company shares could have a bit more room to run in the near term.
How Does Ford Motor Company Stack Up to the Competition?
Shares of Ford Motor Company have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including General Motors (GM - Free Report) , Fox Factory Holding (FOXF - Free Report) , and Tesla (TSLA - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Ford Motor Company. Still, the fundamentals for Ford Motor Company are promising, and it still has potential despite being at a 52-week high.
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Ford Motor Company (F) Hits Fresh High: Is There Still Room to Run?
Shares of Ford Motor (F - Free Report) have been strong performers lately, with the stock up 19.4% over the past month. The stock hit a new 52-week high of $24.95 in the previous session. Ford Motor has gained 13.9% since the start of the year compared to the 2% move for the Zacks Auto-Tires-Trucks sector and the 2.4% return for the Zacks Automotive - Domestic industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 27, 2021, Ford Motor Company reported EPS of $0.51 versus consensus estimate of $0.28 while it beat the consensus revenue estimate by 4.62%.
For the current fiscal year, Ford Motor Company is expected to post earnings of $1.91 per share on $130.49 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.26 per share on $147.31 billion in revenues. This represents a year-over-year change of 1.9% and 12.89%, respectively.
Valuation Metrics
Ford Motor Company may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ford Motor Company has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 0.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Ford Motor Company currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ford Motor Company passes the test. Thus, it seems as though Ford Motor Company shares could have a bit more room to run in the near term.
How Does Ford Motor Company Stack Up to the Competition?
Shares of Ford Motor Company have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including General Motors (GM - Free Report) , Fox Factory Holding (FOXF - Free Report) , and Tesla (TSLA - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Ford Motor Company. Still, the fundamentals for Ford Motor Company are promising, and it still has potential despite being at a 52-week high.