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Should Value Investors Buy Ford Motor (F) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Ford Motor (F - Free Report) . F is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Investors will also notice that F has a PEG ratio of 3.11. 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 3.66. Over the past 52 weeks, F's PEG has been as high as 3.19 and as low as 0.54, with a median of 0.91.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.8.

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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