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Is Ford Motor (F) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Ford Motor (F - Free Report) . F is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

F is also sporting a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. F's PEG compares to its industry's average PEG of 2.43. Over the past 52 weeks, F's PEG has been as high as 1.65 and as low as 0.72, with a median of 1.13.

Finally, we should also recognize that F has a P/CF ratio of 3.86. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.86. Over the past 52 weeks, F's P/CF has been as high as 12.84 and as low as 3.10, with a median of 4.88.

These are only a few of the key metrics included in Ford Motor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, F looks like an impressive value stock at the moment.


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