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Are Investors Undervaluing Ford Motor (F) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Ford Motor (F - Free Report) is a stock many investors are watching right now. F is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that F holds a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. F's industry has an average PEG of 2.66 right now. 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 1.11.

Finally, investors will want to recognize that F has a P/CF ratio of 4.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. F's current P/CF looks attractive when compared to its industry's average P/CF of 15.57. Over the past 52 weeks, F's P/CF has been as high as 11.73 and as low as 3.10, with a median of 4.70.

These are just a handful of the figures considered in Ford Motor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that F is an impressive value stock right now.


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