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Is Ford Motor (F) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

F is also sporting a PEG ratio of 1.06. 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. F's PEG compares to its industry's average PEG of 2.74. Over the last 12 months, F's PEG has been as high as 1.62 and as low as 0.72, with a median of 1.05.

Finally, our model also underscores that F has a P/CF ratio of 4.95. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.88. Over the past 52 weeks, F's P/CF has been as high as 11.02 and as low as 3.10, with a median of 4.61.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ford Motor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, F feels like a great value stock at the moment.


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