Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Ford Motor Company (F - Free Report) closed at $11.91, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.01%.

Prior to today's trading, shares of the company had lost 22.99% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 8.02% and the S&P 500's loss of 9.7% in that time.

Wall Street will be looking for positivity from Ford Motor Company as it approaches its next earnings report date. On that day, Ford Motor Company is projected to report earnings of $0.51 per share, which would represent no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.91 billion, up 14.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.08 per share and revenue of $146.9 billion. These totals would mark changes of +30.82% and +16.42%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ford Motor Company. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% lower. Ford Motor Company is currently a Zacks Rank #3 (Hold).

In terms of valuation, Ford Motor Company is currently trading at a Forward P/E ratio of 5.77. This valuation marks a discount compared to its industry's average Forward P/E of 10.25.

We can also see that F currently has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 0.74 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ford Motor Company (F) - free report >>

Published in